PRAGUE - Czech President Petr Pavel on Thursday accepted the resignation of Prime Minister Petr Fiala's government, as former prime minister Andrej Babis' ANO party is currently working on a new cabinet.

Fiala's government will continue to serve as a caretaker until the new cabinet takes office.

The ANO party won the country's parliamentary election in October. Last week, Pavel formally tasked Babis with forming a new government. ANO has signed a coalition agreement with the Freedom and Direct Democracy and the Motorists.

During a ceremony, Pavel praised the outgoing government for its handling of a challenging term.

Fiala said that his caretaker government would do everything possible to ensure a smooth transfer of power.