French collectors pawn wine in dash for cash

Paris - One fears the natural order of things has been up-ended if the French are giving up their wine. But financial woes have driven many to do just that.

Over the past year, cash-strapped Parisians have handed over thousands of bottles of grands crus to the Credit municipal de Paris in exchange for cash or loans.

The city-run lender and pawnbroker of sorts has seen demand for new loans soar in recent months. To help meet that growing need, it auctioned off about 2 500 bottles, bringing in nearly 200 000 euros (R2.3-million) in fresh funds. "In the wine cellars of Paris, and even in the wine cellars of the provinces, there are veritable treasures," said Robert Gorreteau, wine expert at Credit municipal.

As the financial downturn deepens, more and more Parisians are converting those treasures to cash.

Credit municipal - founded by Louis XVI in 1777, it proclaims itself Paris's oldest financial institution - saw loan requests reach an average of 500 a day in 2008, up 25 percent since 2007. Last year, the lender gave out 75-million euros - up 20 percent from the year before.

More and more borrowers are opting to trade their bottles for quick cash instead of loans that accumulate interest and need to be paid off, Gorreteau said. The wines sold at the auction were traded in by Parisians who agreed to part permanently with the bottles.

Credit municipal paid half price for the wines, but sold them at market rates or better.

The auction saw a single bottle of 1982 Chateau Petrus go for 1 950 euros, a five-bottle box of 1990 Chateaux Margaux fetch 2 400 euros and six bottles of 2000 Chateau Lafite Rothschild sell for almost 4 000 euros - prices that might convince more than a few wine hoarders that now is the right time to sell. - Sapa-AP