The head of the IMF has called for the eurozone's rescue funds to be used to bailout banks directly.
Christine Lagarde has also called for the introduction of eurobonds in order to prevent the debt crisis escalating.
Speaking at a news conference following a meeting of eurozone finance ministers in Luxembourg, Lagarde said that Europe needed to move towards deeper fiscal and economic union.
The aim would be that tens of billions of euro which struggling banks might need in fresh capital should not count towards a country's national debt.
The call by Christine Lagarde will be welcomed by the Irish Government which has long argued Ireland's bank debt unfairly burdens the national debt.
But several governments including Germany oppose the idea because they are worried that banks may not be trusted to pay the money back.
Independent auditors have said that Spanish banks may need up to €62bn in extra capital.
The money is expected to be sourced mostly by a euro zone bailout, after Spain's medium-term borrowing costs spiralled to a euro-era record today.
Madrid's finance minister said a formal request would be made in days for the bailout, which was agreed two weeks ago.
Speaking to reporters on arrival at the meeting, the Minister for Finance Michael Noonan said when dealing with Spain, it was a mistake to transfer bank debt on to the balance sheet of the state, and that Europe should have learned the experience of Ireland.
Mr Noonan suggested that Spain may not have faced such high borrowing costs if it had told Europe earlier how much banking funding it needed.Meanwhile, in Berlin German opposition parties have reached agreement with the government on ratifying the fiscal treaty on 29 June.
Opposition MPs had been in conflict with Angela Merkel's government over adding a growth agenda to fiscal compact.
The main opposition Social Democrats' (SPD) leader Sigmar Gabriel said they had also agreed to push for a financial transaction tax in the European Union, if necessary just among member states forming a "coalition of the willing".
Dr Merkel needs opposition support to get a two-thirds majority in parliament on 29 June to ratify the European Stability Mechanism (ESM) so that it can come into effect on 1 July.