Italy revolutionize the banking system!

[tricker]

Bank loans are secured with cheese!!!!!!!!! While the planet is trying to get out of the crisis, in Italy it seems that financial institutions do not have problems with Cash assets. In a region, a practice of banks lending old decades: bring wheels of cheese.
How do you think, should and other countries to try such a system?

[M.Helen]

They found out the situation during the crisis! but we how to implement this system if we don't have cheese? Unless if will receive what we can offer..

[Peach]

very inventive and ingenious. Of course this cheese can be exported sold and in this way to recover the money. People may not have this posibilities to export several tens of kg, but the bank in wholesale have.

[Faw_Peter]

I'm glad for them! why not? Is a way out...but I don't think that other countries will adopt this "revolution".

[Steven]

This revolution seems to go smoothly ... have amazing prize-winning draws, lotteries offering the job places, no one wail that it lost his/her work... I understand this process, but I can not imagine how takes place. people go to the bank with trucks with cheese? :quoi

[Barbara]

AP updated 8:07 p.m. ET Aug. 21, 2009
MILAN - All that is golden in bank Credito Emiliano's temperature-controlled vault is not precious metal, but something equally prized in Italy: aging Parmesan cheese.

Row upon row of 85-pound wheels of straw-colored Parmesan cheese, stacked some 33 feet high at a secure warehouse, age for as many as two years under the care of bank employees trained in the centuries-old art of Parmesan making.

The program allows Parmesan producers to pump cash into their business by using their product as collateral while it is otherwise sitting on a shelf for the long aging process. While the mechanism was not born out of the current economic crisis, dating rather from Italy's post-World War II years, producers say it is ever more important because it ensures that credit keeps flowing during otherwise tight times.

"In times of crisis, the system is helping the cheesemakers," said Iginio Morini, spokesman for the Parmigiano-Reggiano Cheese Consortium, which represents more than 400 Parmesan producers who are the only ones who may name their cheese "Parmigiano-Reggiano."

A cheesemaker turns over a percentage of his production, say 25 percent, to a bank warehouse and is given a certificate which can be presented to the bank to secure the loan, Morini said. In many cases, the cheesemaker then sells title to the cheese to a distributor while the cheese is still aging.

"An advance payment, as the one offered from Credem (Credito Emiliano) is a really positive thing because it gives at least the chance of surviving the lapse of time, hoping that the market will recover in a short period of time," said Cristian Bertolini, a quality check expert for the consortium.

Typically, a Parmesan maker who produces 7,000 wheels a year might put up 2,000 as collateral for a loan. According to Morini's calculations, each wheel is worth as much as 300 euros ($425), valuing the cheese collateral at 600,000 euros. The bank would then issue a loan of 60 percent to 70 percent of the value, so around 420,000 euros.

The Parmesan loan business contributes just 1 percent to the bank's annual revenue — but is critical to its image in the region, where agriculture is a key economic driver, said William Bizzarri, director of the Credito Emiliano subsidiary that deals in Parmesan deposits.

Bizzarri said Parmesan deposits are up about 10 percent due to the recession. At capacity, the cheesy deposits are worth from 120 million euros to 130 million euros.

Inside the vaults, the temperature is maintained at between 64 to 68 degrees Fahrenheit with humidity above 90 percent. The forms are rotated and cleaned automatically by machines.

Parmesan wheels lend themselves well to use as collateral because they are eminently traceable. Each form is stamped with the month and location where it was produced, and after 12 months of aging, it earns the Parmesan imprint, although some varieties are aged for up to 24 and even 30 months.

Those markings helped identify 570 Parmesan wheels stolen six months ago, Bizzarri said.

[Nathan]

"An advance payment, as the one offered from Credem (Credito Emiliano) is a really positive thing because it gives at least the chance of surviving the lapse of time, hoping that the market will recover in a short period of time," said Cristian Bertolini, a quality check expert for the consortium.

is a very good way to help, to motivate and to get out from crisis the cheese market... cheese has a relatively long period of storage which is an advantage and not a problem because can be transported to long distances and can be sold in dependence of demand and not during the validity

[Riser]

Italy use milk to make cheese while Milk producers from all over Europe complain that exaggerated the price drop this food push them towards bankruptcy. were spread on fields 3 million liters of milk daily quantity corresponding production of Wallonia.
Maybe they should sell on credit a part of milk, to cheese producers and the money will receive monthly, as a kind of reimbursement....

[Barbara]

"An advance payment, as the one offered from Credem (Credito Emiliano) is a really positive thing because it gives at least the chance of surviving the lapse of time, hoping that the market will recover in a short period of time," said Cristian Bertolini, a quality check expert for the consortium.

is a very good way to help, to motivate and to get out from crisis the cheese market... cheese has a relatively long period of storage which is an advantage and not a problem because can be transported to long distances and can be sold in dependence of demand and not during the validity

Initiative is typical of a region, Emilia Romagna, very active and enterprising.

This is an area not particularly beautiful as the landscape, but that has created initiatives such as the Ferrari, and many in the food (pasta Barilla, parmigiano, prosciutto) and manufacturing.
This region is very efficient even in education services and the person.
Now also there, however, feels the crisis, many have closed.

[Faw_Peter]

Barbara I read what you posted you and I want to ask you, how long will "be alive" this method of credit ? up your producers of cheese will get on feat or has not a "period of validity"? :quoi

[Barbara]

Barbara I read what you posted you and I want to ask you, how long will "be alive" this method of credit ? up your producers of cheese will get on feat or has not a "period of validity"? :quoi

I don't know, but doing some research I found more details:

The initiative of the Banca Popolare dell'Emilia Romagna is divided with different rates and durations to allow: the anticipation of transfer credits claimed by shareholders against the dairy farmer and enable the company to overcome the liquidity crisis arising from the delay payment for milk delivered: the opening of credit to the dairy to anticipate the liquidation of the transferring milk to complete the cycle of ripening the cheese calculator capable of allowing multi dairy to address the entire cycle of maturing cheese, programming financial management of advance payments and expenses associated with the process.
These proposals can then be usefully complemented by action by the competent Confidi by field of intervention in a manner to be determined.
REGION INITIATIVES FOR AGRICULTURAL CREDIT
The proposal of Banca Popolare dell'Emilia Romagna to be coupled with other initiatives that the Department has promoted regional agriculture to support and facilitate access to credit for agriculture and agri-food. From Reform Act of Consortia Agrifidi, the agreement with the Ismea Institute - a service for the agricultural market food to arrive in the "Investiagricoltura. The result of an agreement between the State Treasurer and the banks UniCredit Banca, Banco Popolare di Verona e Novara and Banca Popolare dell'Emilia Romagna same "Investiagricoltura" facilitate access to credit for farmers by providing 30 million euros for the period 2007-2010 at a cost of money lower than the market.

[Faw_Peter]

I'm very interesting where they keep the cheese? Why bank do with that cheese ? do they sell you? :?

[Barbara]

I'm very interesting where they keep the cheese? Why bank do with that cheese ? do they sell you? :?

Credem ( bank) would build between Modena and Reggio two huge armored deposits, where over 440 thousand forms of Parmesan is kept for 24 months of aging (the aging it needs them).


The value of these two "bunker" is 132 million, about 1 percent of employees Credem. The offer is very simple: in the 24 months to address is the Institute of cheese, and in return the bank grants a loan of two years with a spread beneficial. Upon expiry of this period, the customer gets back in good standing forms of Parmesan cheese, as if nothing had happened. In case of delinquency, however, the bank sells the product itself, and the proceeds go directly to climb out of debt that is owed. In this way the risk to the bank is minimal. The only hitch may be two: a strong devaluation of the cost of the product, or a big robbery. It is also clearly already happened, but without consequences.


This type of creative financing, which is perfectly suited to products such as parmesan cheese with a long period of aging, has been applied previously to wine and even whiskey too. For the future, however, always in Emilia Cariparma is studying the introduction of derivatives on the ham, another local product, much appreciated. But there is also the site "Credit balsamic", another idea of loans for all producers homonym vinegar. In short, it's true: in times of crisis we invent everything.

[Faw_Peter]

Is very impressive that picture with cheese.... hock: Thank you Barbara I found a lot of useful information from your posts... if you know more add also.... and I if will have questions will address them to you.. uper