Spanish borrowing costs roared to a euro-era record high yesterday on a market beset by doubts over a vast rescue loan for the country’s banks and by fears of a Greek exit from the eurozone.

Markets appeared to be in alarm despite eurozone powers striking a deal on Saturday to extend Spain a banking sector rescue loan of up to €100 billion.

Two major concerns stood out: doubts over Spain’s outlook even with the eurozone rescue, and Greek elections on Sunday, which in a worst-case scenario could send Athens back to using the drachma.

Adding to the Spanish agony, Fitch Ratings downgraded 18 more Spanish banks a day after cutting its ratings on the two biggest banks, Santander and BBVA, despite the massive sector bailout.

Fitch warned that some Spanish banks’ loan portfolios could deteriorate further.

It was impossible to say how things may turn out, warned independent economist Edward Hugh.

“This thing is like an express train accelerating towards the buffers in the station,” he said.