Nepal agrees to caretaker government ahead of mid-year election

KATHMANDU (Reuters) - Nepal's main political parties said on Monday they had reached an agreement to set up a unity government before a national election in the middle of the year, in a deal that could end a deadlock after a decade of civil war.

Maoist Prime Minister Baburam Bhattarai, 58, will step down and Chief Justice Khil Raj Regmi of the Supreme Court will head the new administration to oversee the vote in May or June, the parties said.