French deal will release Lockerbie £1.7bn

Relatives of victims of a 1989 French airliner bombing have signed an increased compensation deal with Libya, paving the way for a UN resolution lifting sanctions against the North African country.

The deal, announced in Paris, adds to the £21m (€29.9m) Libya paid in a 1999 agreement and will lead to the Lockerbie compensation deal taking place.

The French had demanded more compensation since Libya has agreed to pay £1.7bn (€2.4bn) to relatives of the 270 victims of the 1988 blowing up of a Pan Am jet over Lockerbie.

The French deal was signed last night in Tripoli, the Libyan capital.

As a result, the UN Security Council is expected to agree tomorrow to a British resolution to lift Libyan sanctions although the US is likely to abstain.

Paris had threatened to veto the resolution unless Libya increased its compensation to the French airliner bombing victims.