Bangladesh's Awami League to contest polls

DHAKA, Jan 14 (Reuters) - Bangladesh's grand political alliance led by the powerful Awami League will contest parliamentary elections, a top leader said today, days after the president met its demands and postponed the disputed ballot.

The alliance had boycotted the polls saying the president, as head of an interim administration, was favouring its rivals. It wanted the polls to be delayed and voters' lists updated to ensure a free and fair election, which had been set for Jan. 22. ''We have decided to participate in the elections,'' Awami League general-secretary Abdul Jalil told Reuters in an interview.

''This present caretaker government has to go ahead with the preparation of the Election Commission, voters' list ... then we are ready to participate at any moment.'' The decision by the alliance came two days after it called off plans for new blockades and strikes in the poor South Asian country after President Iajuddin Ahmed gave in to mounting pressure and stepped down as head of an interim government tasked with holding the polls.

Iajuddin also imposed emergency laws to prevent violence and named Fakhruddin Ahmed, a respected economist and a former central bank governor, as the new caretaker chief.

Ahmed has begun forming a council of advisers to run his administration and is expected to open talks with the Awami League and the Bangladesh National Party of the previous prime minister, Begum Khaleda Zia, to build political consensus.

He is also expected to reform the Election Commission, redo the voters' lists and then set a schedule for the ballot in the Islamic country of 140 million people.

REUTERS SSC MIR BST1521