... ThebalancesheetoftheIBRC and thecrucialroleplayedbyitsELAdebts. Theprocessofgranting and repaymentofELA and theroleoftheECBinthisprocess. Thefunctionofthepromissory notes and theireffectonofficialdebt and deficits.Unfortunately, ... WhyRestructurethePromissory Notes? Beforeconsideringpolicyoptionsforchangingthestructureofthepromissory notes, itisworthemphasisingwhysucharestructuringisdesirable.TheEuropeanCommission’slatestreportonIrelandprojectsthattheIrishdebt‐GDPratiowillpeakat119percentattheendof2013,justasthestateissettorunoutofitsEU‐IMFfunding.Thisdebtratioiswellbeyondlevelsthathavetraditionallybeenconsidereddangerous,evenpriortotherecentexampleofprivatesectorsovereigndebtrestructuringwithintheEurozonesetbyGreece.Ascurrentlystructured,thereislittledoubtthattheIBRC’spromissory notes willrepresentasignificantnegativefactorinrelationtofinancialmarket’sassessmentofthesustainabilityofIreland’sdebtburdenatthattime.Ihaveprojectedabovethat,basedonthecurrentschedule and thenatureofIBRC’sELAdebts,Irelandissettomakeitstwelfth and lastpromissorynotepaymentin2022.Effectively,thepromissory notes actliketwelvedifferentzero‐couponbondswithmaturitiesrangingfromonetotwelveyears.Thus,theeffectiveaveragematurityofwhatisleftofthisdebt,whichaccountsfortwentypercentofGDP,isaboutfiveyears.CombinedwithanaveragematurityasofMarch2012onIreland’sexistingprivatedebtofabout€80billionofaboutsix and ahalfyears,thismeansthatIrelandwillhaveverysignificantfundingrequirementsoverthenextfewyears,evenbeforeoneconsiderstheincrementalborrowingassociatedwithbudgetdeficits.13ItisthefirmhopeofIreland’sEurozonepartnersthatIreland,whichiswidelypraisedforitswillingnesstoimplementausteritymeasures,beabletoaccesssovereigndebtmarketsby2013.AnystepsthatcanbetakentohastenIreland’sdeparturefromtheEU‐IMFprogrammeareintheinterestsofboththeEurozonememberstates and theIrishpeople.Areductioninthefundingburdenassociatedwiththepromissory notes representsarelativelysimplewaytotakesuchastep.13Calculationsbasedoninformationinwww.ntma.ie/GovernmentBonds/Daily_Bonds_Outstanding. ... ConclusionTothosewhohaveexperiencedtheIrishbanking and fiscalcrisisatfirsthand,themoral and practicalargumentsforeasingtheburdenontheIrishtaxpayeroftheIBRC’sdebtmayseemobvious.MuchofthisdebtwasincurredbytheIrishstatesothatunsecured and unguaranteedseniorbondholdersinthenotoriousAngloIrishBank and IrishNationwideBuildingSocietywouldbepaidback.ThiswasapolicythattheEuropeanCentralBankrepeatedlyurgedtheIrishgovernmenttoadoptintheinterestsofEuropeanfinancialstabilitybutwhichleadIrelandtothevergeofnationalbankruptcy.Today,Irelandisagaintoutedastheposterchildforausterity and reform and aneasingoftheburdenofthisdubiously‐assumeddebtwouldgreatlyimprovethechancesofasuccessfuloutco...