In central Italy, a deposit of prized Parmesan cheese is enough to secure a loan
In central Italy, a deposit of prized Parmesan cheese is enough to secure a loan
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The unique system dates back to the 1950s and is still used by four banks in the northern Emilia-Romagna region, including one, which holds around 400,000 rounds of the cheese.
A round of Parmesan weighing 40 kg is worth 300 euros (approximately Rs 20,745) and will take about two years to mature.
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Who Moved My Cheese? A worker checks a wheel of seasoned Parmigiano Reggiano cheese in a factory in Valestra, near Reggio Emilia. |
"But during these two years, the producers must cover a range of costs and continue to pay their suppliers.
To allow them the necessary financing, the banks in this region have diversified by creating Parmesan storage," said William Bizzarri, who looks after the stored cheese for Credito Emiliano bank.
Out of the 400,000 rounds of cheese currently stored in the warehouses managed by Bizzarri, 65 per cent are there as part of a bank guarantee.
In cases of default, the banks recuperate their losses by selling the cheeses.
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"If the price of the Parmesan stored drops we ask the producer to make up the difference either in money or cheese," he added.
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