Libya has officially accepted responsibility for the 1988 Lockerbie bombing.

LIBYA has agreed to set up a €2.4 billion fund for families of 270 people killed in the 1988 Pan Am bombing, the families' lawyers said, a move that could end UN sanctions and resolve an issue that has made the country an international pariah.

A £1.7bn (€2.4bn) deal to compensate the families of 270 victims killed in the Lockerbie bombing has been agreed by Libya, it was announced today.

The case against two Libyans accused of carrying out the Lockerbie bombing has been proved "beyond reasonable doubt", according to prosecutors.