Precious cheese seals the deal
MILAN: Forget gold, property or precious stones. In central Italy, a deposit of Parmesan cheese is enough to secure a loan.
The unique system dates back to the 1950s and is still used by four banks in the northern EmiliaRomagna region, including one which holds about 400 000 rounds of the cheese.
A round of Parmesan weighing 40kg is worth € 300 (R3 440).
“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 stored cheeses for Credito Emiliano bank.
In cases of default, the banks recuperate their losses by selling the cheeses. – SapaAFP