Spanish Prime Minister Mariano Rajoy has welcomed a European financial lifeline of up to $125 billion to rescue his country's failing banks.

Mr. Rajoy told reporters Sunday that efforts by his center-right government had prevented a wider state bailout and that the assistance his country is receiving is different than that received by Greece, Italy and Portugal.

He says the decision to prepare a bailout was difficult, but sends a “clearly defined message the euro is an irreversible project.”

Spain has long rejected reports that it would need bailout loans like Greece, Ireland and Portugal, but the government has had to bow to rising pressure from the markets, which have sent its borrowing costs soaring.

Spain's Economy Minister Luis de Guindos said the deal imposes no conditions on the overall Spanish economy, and no new austerity measures.

The exact loan amount will be determined once independent audits are completed later this month.