Collateral You Can Eat

Now this is a prize currency.  From Bloomberg:

The vaults of Credito Emiliano SpA hold the pungent gold prized by gourmands around the world — 17,000 tons of parmesan cheese.

The regional bank accepts parmesan as collateral for loans, helping it to keep financing cheesemakers in northern Italy amid the worst recession since World War II. Emilia Romagna-based Credito Emiliano’s two climate-controlled warehouses hold about 440,000 wheels worth 132 million euros ($187 million).

The bank offers loans for as long as 24 months, equal to the time it takes the parmesan to age, at the euro interbank offered rate, plus 0.75 percent to 2 percent, Bizzarri said. The bank gives producers as much as 80 percent of the value of the product, based on current market prices. [link]

Nice terms, but what if you get hungry at some point between now and loan maturity?

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