Willie Frazer has said “very reliable sources” have intimated to him that progress is being made on obtaining £300m in Libyan cash to compensate IRA victims.
The long-standing victims’ campaigner said some Government figures have told him that this sum could be made available from the more than £9bn-worth of assets belonging to the old Gaddafi regime currently held in the UK.
Col Gaddafi was responsible for large-scale shipments of arms to the IRA.
Mr Frazer said that with war-wracked Libya now appearing slightly more stable, he is “very confident” victims could obtain this.
However, he added that part of the deal might involve accepting that no IRA men would be pursued for the importation of the arms in the first place.
He said: “The financial end of it would bring closure to the victims, and that’d be the end of it.”
A spokesman for the Foreign and Commonwealth Office said: “We are determined to see a just solution for UK victims of Qadhafi [Gaddafi]-sponsored terrorism. The Foreign Office is providing support to the victims and Minister Ellwood continues to meet with them.
“The new Libyan government is aware of our position, but the significant security, political and economic challenges they are facing means progress may take time.”