State Dept.: Libya pays $1.5 billion to settle terrorism claims

WASHINGTON (CNN) - The United States has received $1.5 billion from Libya as payment for victims of terrorist attacks, Secretary of State Condoleezza Rice told Congress on Friday.

"These funds are sufficient to provide the required compensation to victims of terrorism under the Libyan Claims Resolution Act," the State Department said in a statement. "The administration will now move expeditiously to arrange for distribution of these funds in lieu of the pending U.S. court cases against Libya."

The payment was a key element in a complicated U.S.-Libya agreement that involves improving relations, ending legal liability for Libya related to the attacks and opening the way for U.S. investment in the oil-rich country.