Bangladesh, Nov. 7 -- Bangladesh is set to resume borrowing highest-interest Japanese loans after failing to convince the financier to offer more concessional terms in what officials say a shift in government approach to overseas borrowing.

Advertisement Analysts say borrowing at steeply raised 3.5-percent interest is destined to bloat repayment obligations as huge sums of funds will be taken for Japanese-funded metro-rail projects, apart from two immediate loans for two development projects.

The government prepares to sign two loan agreements for the Upazila Governance and Development Project and the Investment Climate Improvement Project shortly under the revised lending terms, according to officials at the Economic Relations Divisio...