MADRID: Spain's Prime Minister Mariano Rajoy said on Monday he was in favour of modifying euro zone bailout mechanisms to allow direct bank recapitalisations.

Asked at a press conference whether he supported possible changes to bailout structures at a euro zone level, Rajoy said: "Many people are in favour of that, and I am as well."

Spain has repeatedly rejected the need for external help to fund the rescue of its troubled banking sector.