Spanish Prime Minister Mariano Rajoy has hailed a decision by eurozone Finance Ministers to help Spain shore up its struggling banks as a victory for the European common currency.

The eurozone ministers agreed on Saturday to lend Madrid up to 100 billion euros to help banks hit by bad property loans. The US and the International Monetary Fund also welcomed the move.

Mr Rajoy told a news conference in Madrid that it was part of efforts by his centre-right government to restore Spain's public finances and carry out structural reforms. He said the rescue would help the process of restoring the credibility of the Spanish economy.