U.S. Secretary of State Hillary Clinton on Wednesday hailed the formation of a new government in Libya, calling it a \"significant step\" in the North African country\'s transition to democracy. \"The formation of a new cabinet by the Transitional National Council (NTC) is a significant step in Libya\'s transition to a true democracy that is inclusive and representative of all Libyans, \" the top U.S. diplomat said in a statement. She said the United States would work with the new interim Libyan government to address the key challenges facing the nation, such as protecting and respecting the rights of all Libyans, consolidating control over militias, ensuring a \"functioning and credible\" government and preparing for the transition to an elected government. After repeated postponement due to differences among factions within the NTC, the interim governing authority in Libya, a transitional cabinet headed by Abdel Rahim el-Keeb, took shape late Tuesday. It is tasked with leading the war-torn country until parliamentary elections are held in 2012.