An Italian bank accepts parmesan cheese as collateral to grant loans

Published 2024년 7월 12일

Tridge summary

Credito Emiliano, a regional bank in Italy, has been providing loans to Parmesan cheese producers in Emilia Romagna since 1953, using the cheese as collateral. The bank offers up to 80% of the product's current market value and provides loans for up to 24 months, the same amount of time it takes for Parmesan to age. The cheese is marked with a serial number for traceability and is stored in a state-of-the-art storage plant. If a producer defaults on the loan, the bank sells the cheese to recover its investment and returns the difference to the producer. This method of credit, which accounts for 1% of the bank's annual income, is crucial for the local economy as agriculture is a key sector in Emilia Romagna.

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Original content

In the valleys of Italy's Emilia Romagna region, southeast of Milan, Credito Emiliano has used Parmesan cheese as collateral for credit since 1953. This regional bank offers loans for up to 24 months, equivalent to the time it takes for Parmesan to age, and gives producers up to 80% of the value of the product based on current market prices. Each piece of cheese, weighing around 36 kilos, has an approximate value of 300 euros. Leo Bertozzi, director of the Association of Parmigiano-Reggiano Producers of Italy, explains that “Parmesan cheese has been used for financial operations since the Middle Ages. This is due to both its value, given that each compact round piece contains the equivalent of 550 liters of milk, and the fact that aging takes years, making financing necessary until the product can be sold.” Giuseppe Montanari, 65, cheese producer, mentions: “This mechanism is our vital serum. I use the loans to buy milk. It is a fabulous way to finance our expenses at convenient ...

Source: Infobae