Under the agreement , Libya pays more than $ 500 million to settle remaining claims from the Lockerbie case and more than $ 280 million for victims of the disco bombing . Payment is part of multitiered plan to normalize relations between the two countries . Tensions go back to attacks on Pan Am 103 , German bombing , U.S. investment . Libya now exempt from legislation allowing for compensation from frozen assets . Deal with Libyan involvement in terror attacks , clearing Libya for U.S. investment .
Payment is part of multitiered plan to normalize relations between the two countries . Tensions go back to attacks on Pan Am 103 , German bombing , U.S. investment . Libya now exempt from legislation allowing for compensation from frozen assets . Deal with Libyan involvement in terror attacks , clearing Libya for U.S. investment .