East Timor president to lead new political party

President Gusmao has formally accepted the leadership after his presidential term ends in May.

The new party, the National Congress for Timorese Reconstruction or CNRT, hopes to wrest the majority of seats from the Fretilin Party in forthcoming parliamentary elections.

East Timor is currently focused on its presidential election campaign - a race between eight candidates including Prime Minister, Jose Ramos Horta.

The CNRT, which takes its name from the coalition which achieved independence, hopes Xanana Gusmao and Jose Ramos Horta will form a popular team in the new government.