Government ceasefire with rebels holding in Yemen

SANAA, June 18 (Reuters) A truce which halted months of clashes in Yemen was holding today, days after Shi'ite rebels accepted a government ceasefire offer.

''All areas in Saada province are calm and we are set to begin the official ceasefire tomorrow,'' a government official told Reuters.

A delegation of Yemeni parliamentarians and an observer team from Qatar, which helped mediate the ceasefire, have gone to the northern province of Saada where hundreds of people have been killed in fighting this year, he said.

A ceasefire agreement announced on Saturday committed Yemen to reconstruction in rebel areas, required rebels to hand in heavy weapons and included a temporary exile for their leaders.

Thousands of people have been displaced by the fighting, the latest bout in a conflict that has raged on and off since 2004, and residents said many were returning home amid a festive mood.

The rebels say their mountainous region, like many parts of Yemen, is neglected.

Sunni Muslims are a majority of the 19 million population and most of the rest are from the Zaydi branch of Shi'ite Islam.

REUTERS KN SBA BST0227