Cash-strapped Parisians forced to raid the cellar

THE French have confronted their worst economic outlook in 30 years by locking up their bosses, marching on the capital and barricading oil terminals.

Now the cruellest cut of all: they’re selling off their wine.

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 on Tuesday night, bringing in nearly €200,000 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, a 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, and proclaiming itself Paris’s oldest financial institution – saw loan requests reach an average of 500 per day in 2008, up 25% since 2007.

Last year, the lender gave out €75 million – up 20% 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 Tuesday’s 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, a five-bottle box of 1990 Chateaux Margaux fetch €2,400 and six bottles of 2000 Chateau Lafite Roths-child sell for almost €4,000 – prices that might convince more than a few wine-hoarders that now is the right time to sell.

Despite his own love for fruit of the vine, Gorreteau is not saddened that some are trading the pleasure of uncorking a closely guarded bottle for the satisfaction of a full wallet.

“Wine, it’s a convivial pleasure,” he said. “It has to be shared.”