Eurogroup approves Spanish bank bailout: minister

Isabel Marin, 60, who is unemployed, poses for a photograph holding a placard that reads: ''Not one step back in equality policies'' as she takes part in a protest march against austerity measures in Malaga, southern Spain, July 19, 2012.

LUXEMBOURG (Reuters) - The Eurogroup of euro zone finance ministers formally accepted on Friday a memorandum of understanding with Spain, which will allow Madrid to borrow up to 100 billion euros to recapitalise its banks, Luxembourg's Finance Minister Luc Frieden said.

"We have formalised what we discussed in the past two Eurogroup meetings. We have formally approved the memorandum that lays out the conditions under which Spain can be lent money for the recapitalisation of its banks," Frieden told reporters.

"The approval of all 17 ministers is there, and that means that the programme can continue. Money will not flow immediately, because work on the analysis of the specific banks is ongoing."

(Reporting by Michele Sinner, writing by Jan Strupczewski; editing by Rex Merrifield)