An Italian bank accepts parmesan cheese as collateral to grant loans

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 ...