British and Irish ministers have welcomed the ending of the UVF-LVF feud and the decision of the LVF to stand down.
However, both Minister for Foreign Affairs Dermot Ahern and Northern Secretary Peter Hain called for action to back up the loyalist groups' intentions.
Mr Ahern said: "I am hopeful that this can lead to further positive developments.
"I would encourage the LVF to engage now with the IICD [ decommissioning body] with the decommissioning of all their arms. I would also encourage other loyalist paramilitary groups or organisations to build on this opportunity to bring a speedy end to all paramilitary activities."
He added: "The Irish Government is ready and willing to work with those leaders within loyalism who are seeking to address the very real needs of their communities through peaceful means.
"At this time we should remember all those who have suffered at the hands of the LVF and other paramilitaries."
Mr Hain, speaking in the House of Commons during a debate on counter-terror legislation, told MPs: "I welcome any move that brings murderous violence to an end.
"The [ LVF] statement is therefore a step forward and one that I hope will give encouragement to those who are working to establish the primacy of politics in their communities.
"Of course words must also be matched by deeds from all loyalist groups." He said the UVF and LVF needed to complete decommissioning of all weapons and cease all criminal activity.
Referring to comments on Friday by Gerry Adams, Mr Hain added: "Can I also say that hearing the president of Sinn Féin use the words 'the war is over' - words that we have wanted to hear for such a long time, is also a further sign that we are continuing to move in the right direction."
Nationalist parties and relatives of people killed by loyalist paramilitaries expressed caution while welcoming the news.
Sinn Féin's Gerry Kelly said: "The LVF is a small part of the unionist paramilitary problem. The larger organisations - the UVF and UDA - have been involved in the summer months in ongoing violence and attacks on Catholics especially in areas like north Antrim. These campaigns need to end."
Upper Bann Assembly member Dolores Kelly said: "We must hope that this truly is the end of the LVF and all its killings, drug dealing and racketeering.
"This announcement may be a useful first step but there are many more steps to take."
However, Ann Trainor, whose son Damien and his best friend Philip Allen were murdered by LVF gunmen in Co Armagh in 1998, said she found the move hard to believe. "Both sides are just as bad," she told BBC Radio Ulster. "There is a lot of evil and jealousy. It is hard to believe. The evil will never quit - you can see it every way."
DUP North Belfast MP Nigel Dodds said he "warmly welcomed" the end of the feud.
"Communities have been set on edge and put into turmoil. I pay tribute to those who have worked so hard to bring this resolution about," he added.
Ulster Unionist leader Sir Reg Empey said the move was another positive development in the political process. Alliance leader David Ford cautiously welcomed the developments.