Nepal's Maoist rebels have declared a three-month ceasefire after incoming Prime Minister G.P. Koirala assured them that elections will be held for a constituent assembly.

The rebels said Thursday they will not carry out any offensive military action during the time period.

They say the truce is intended to encourage political parties to draft a new constitution that would curtail the role of the king to a ceremonial head.

Wednesday, the rebels lifted a blockade on the capital, Kathmandu, and other major towns. However, it warned the barricades will be re-imposed if parliament members do not announce plans for elections Friday.

The King announced Monday he would reinstate parliament. Thousands of Nepalese held a victory rally following the move, and opposition parities ended three weeks of crippling protests.

King Gyanendra fired the government and took power himself last year, accusing politicians of failing to stop the Maoist insurgency.

Some information for this report provided by Reuters and AFP.