WASHINGTON (CNN) -- Libya will pay hundreds of millions of dollars to victims of terrorist attacks involving Americans in an agreement signed and finalized Thursday, the U.S. State Department said. U.S. Assistant Secretary of State David Welch, left, and Libyan Deputy Foreign Minister Ahmad Fitouri sign the deal. Assistant Secretary of State David Welch signed the deal in Tripoli, Libya, on Thursday. If implemented, the deal will end Libya's legal liability in numerous lawsuits from families of victims of what the United States considers Libyan terrorist acts. It also paves the way for stronger ties between the two nations and increased U.S. involvement in the oil-rich nation.
@highlight
Deal ends Libya's liability in lawsuits from families of victims of terrorist acts
@highlight
Libya to pay more than $700 million to settle Lockerbie, La Belle disco cases
@highlight
Libya will be exempt from law allowing terror victims to be paid with frozen assets
It would also set aside funds to compensate victims of several other incidents blamed on Libya but for which @placeholder hasn't accepted responsibility.