KATHMANDU — The World Bank said Thursday it will not fund payments to former Maoist fighters in Nepal, reversing an earlier decision following a review of its activities in the country.
The bank last year pledged 50 million dollars in grants to support the 2006 peace agreement that ended the civil war between the guerrillas and the army in Nepal.
It said the money would be used for the allowances of some 20,000 Maoist former guerrillas confined to UN-monitored camps.
But it has not yet made any such payments and is now in talks with the Nepalese government about reallocating funds to other projects aimed at promoting peace, a spokesman said, without giving a reason.
"The World Bank stands by its commitment to supporting Nepal in the implementation of its Comprehensive Peace Agreement," said Susan Goldmark, the World Bank's country director for Nepal, in a statement.
"As part of our new assistance strategy, we will support projects that aim to contribute to the maintenance of peace and minimise the potential for future conflict."
Nepal's Maoists fought a decade-long "People's War" aiming to topple the monarchy and establish a communist republic.
The former guerrillas won elections last year and formed a Maoist-led government.
But their leader, Pushpa Kamal Dahal, stood down as prime minister in May after only eight months following a failed attempt to sack the head of the army.
The Maoists' former fighters have been living in the camps since 2007, pending integration into the regular army.
But there has been little progress on this and many in the international community have expressed frustration at the slow pace of the peace process.
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