Libya itself paid the compensation for the children allegedly infected with HIV by six Bulgarian medics, European External Relations Commissioner Benita Ferrero-Waldner said.

The EC completed its part of the deal with Libya, Ferrero-Waldner said, as quoted by Agence France-Presse (AFP). Ferrero-Waldner emphasised that she was not referring to payment of large amounts of money.

The money actually came from the Gaddaffi Foundation, it was Libyan money, she told Bulgarian National Radio.

The EU paid no compensation, the Gaddaffi Foundation was the mediator, she told Austrian Radio Oe1.

EU dedicated its efforts only to the improvement, through direct funding, of the medical conditions in the Benghazi hospital where the children were infected, said Ferrero-Waldner.

The Gaddaffi Foundation led the negotiations with the families, AFP said.

According to the foundation, the money was provided from a special fund that Libya and Bulgaria had established under the aegis of the EU in 2005.