BusinessAugust 16, 2026
collateralisation
kuh-LAT-uh-ruh-li-ZAY-shun
Definition
The act of pledging an asset or natural resource as security for a loan to ensure repayment.
Etymology
Derived from the Medieval Latin 'collateralis', meaning 'side by side,' reflecting the practice of placing security alongside a loan agreement. The '-isation' suffix was later added to denote the process or act of applying this practice.
In the news
The article uses the term to describe how governments use natural resources as backing for loans, a practice the summit rejects because it risks mortgaging community resources without consent.
SADC People’s Summit Demands Debt Justice, Resource Control
Read the full article ↗AfricaBrief