United Kingdom backs new government in Nepal

Kathmandu, Apr 2: Terming the new interim government in Nepal a significant step towards lasting peace, visiting United Kingdom International Development Minister Gareth Thomas has said UK would back the new government.

''The formation of the interim government is a huge opportunity, but a significant challenge remain,'' Mr Thomas said.

The Minister is on a three-day visit to the Himalyan nation.

''Key legislation needs to be passed for elections to be held late this year and civil unrest may not end overnight, '' he said.

The British Minister also said the UK stands ready to support the people of Nepal to build an effective, inclusive and accountable state.

Mr Thomas had announced support of 13 million pounds to the Nepali Government-led Peace Trust Fund and at least 23.5 million dollars in debt relief until 2015.

The UK will give an immediate boost of 4.6 million dollars to the Government-led Nepal Peace Trust Fund to help propel the peace process.

The DFID will make an additional 8.5 million dollars available for the Peace Trust Fund, depending on progress made on public financial management.

The UK will also provide a debt relief through the UK MDRI of at least 23.5 million dollars until 2015 to help Nepal meet its debt service payments to the World Bank.

India, the US, the UN and the EU have already hailed the formation of the new interim cabinet in Nepal.

UNI