ECB agrees covered bond structure

The ECB has agreed on the legal framework for its covered-bond programme, bringing it a step closer to asset purchases designed to help boost inflation.

The bank’s governing council yesterday signed off on two acts that officially establish the measure and lay out how it will be implemented, according to two eurozone officials who asked not to be identified because the discussions aren’t public.

ECB president Mario Draghi set the end of this month as the deadline for the covered-bond component of a larger asset-purchase plan designed to combat weak growth and inflation in the 18-nation eurozone.