They have agreed to allocate the Finance and Home Ministries to UML and Foreign Affairs and Defense to NC.
In return for forgoing the Finance Ministry the NC has sought Local Development and Water Resources.
But UML has asked NC to choose only one of these two portfolios.
The party leaders involved in negotiations have decided to take the matter up with the top leaders of the two parties for a complete settlement.
The meeting was marked by differences when the NC leaders expressed dissatisfaction over the ministries offered to their party by UML.
"UML had wanted to retain all the key ministries for itself and offer none of those portfolios to us.," said a NC leader present at the bilateral meeting.
Bidya Bhandari and Surendra Pandey of UML had already been appointed Defense Minister and Finance Minister respectively. NC leader Sujata Koirala was appointed Minister for Foreign Affairs on Thursday.
Bimalendra Nidhi and Krishna Sitaula of NC and Ishwar Pokharel, Shankar Pokharel and Raghuji Pant of UML were at the meeting.
Shankar Pokharel of UML said that the parties had agreed to allocate six portfolios each to NC and UML, four to Madhesi People´s Rights Forum and two to Tarai Madhes Democratic Party. Ministries will also be allocated to the smaller parties. Altogether 350 lawmakers from 22 political parties had supported Madhav Kumar Nepal´s candidacy for the post of prime minister.
Five of the 22 political parties have announced that they will support the coalition government from outside while other parties have staked their claim to inclusion in the cabinet.
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