Italian bank accepts cheese as collateral

parmesan-cheese-as-collateral

In Italy, a deposit of prized Parmesan is enough to secure a bank loan. Apparently this scheme dates back to the 1950s and is still used by some banks in Emilia-Romagna including one which holds around 300,000 blocks of cheese.

Accepting these dairy products as collateral is one way that bankers can continue to support the region’s famed cheesemakers during the recession. Terms vary depending on the size of the producer and the amount of cheese deposited.

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