If the true model is not assumed to be among the original set of models under consideration, a third source of uncertainty emerges, i.e. model misspecification. Uncertainty has been one very important aspect of the policy environment and of the models used that the economic professions has been forced to think more deeply about with the financial crisis.
We will do our best to support NPL resolution. There are currently some legal impediments, but it is crucial that these restrictions are taken into consideration and lifted in order to continue reducing the number of NPLs. I hope that Greek banks will find the means and the instruments necessary in order to continue disposing of the NPLs.