Kathmandu, April 3:

The visiting British International Development Minister, Gareth Thomas, today announced 13 million pound in aid for the Peace Trust Fund and at least 23.5 million pound in debt relief until 2015.

He also announced that the UK will increase its development aid to Nepal by 17 per cent from the existing 37 million pound to 43 million pound in the fiscal year 2007/08.

“The formation of the Interim government is a step down the path to lasting peace in Nepal,” Thomas told a press conference here.

The UK will give an immediate amount of 4.6 million pound to the Nepal Peace Trust Fund. The UK Department of International Development (DFID) will make an additional 8.5 million pound available for the Fund depending on the progress made on public financial management.

“The UK is committed to supporting sustainable peace in Nepal, but Nepal’s political leadership must meet the challenge of building an effective, inclusive and accountable state that all of its people can benefit from,” Thomas said.

Asked if the Maoists could be a “stabilising force”, Thomas said, “Yes they can, but they should make sure that they are not to use violence.”

The UK offered support under the UK Multilateral Debt Relief Initiative, reimbursing its share of 10 per cent of Nepal’s debt service to the World Bank. The first payment of 2.3 million pound has already been made, with another 1.1 million pound arriving in six months’ time.