Irish budget deficit falls after bank rescue deal

DUBLIN: Ireland's budget deficit fell sharply in March from a year ago as a result of a deal struck last week to reschedule a 3.1 billion euro cash payment of high-interest IOUs that the government issued to prop up two state-run banks.

The government's deficit in March was 4.26 billion euros compared to 7.07 billion euros a year ago, data showed on Tuesday.

Ireland made the first of its scheduled 3.1 billion euro payments in respect to the so-called promissory notes a year ago but settled the payment this year by issuing a 13-year bond instead.