The agreement could pave the way for the release of five Bulgarian nurses who were sentenced to death in Libya. They were found guilty of intentionally infecting more than 400 Libyan children with AIDS-tainted blood. The nurses deny the charges.
Bulgaria's Foreign Ministry said in a statement that the fund was agreed in coordination with the European Commission, the United States, and Britain.
Today's announcement comes two days before the five nurses and one Palestinian doctor are due to appear before Libya's Supreme Court to appeal their convictions. They have been held in Libya for almost seven years.
RFE/RL's World: 2005 In Pictures
A slideshow of images related to the top news stories of 2005 from throughout RFE/RL's broadcast region with links to RFE/RL's reporting.