Argentina's Bankruptcy: What Does It Mean for Healthy Firms Situated in the Country?

Hi everyone,

I am looking for some insight on Argentina's continued bankruptcy process, the decline of the Argentine Peso, and the effect these two things have on companies situated in the country?

The company I am looking at is Banco Macro S.A. (NYSE: BMA). At a quick glance, Banco Macro appears to be a pretty healthy company.

In what ways do you think Argentina's economic position will affect a private, yet healthy, bank situated in the country? Do you think it will have any major effect if it is cross-listed on the NYSE (and therefore assuming it has most of its assets in the US dollar)?

Two trading days ago, the stock fell 17% on what I assumed to be continued news of the country's financial crisis, as well as a steep decline in the value of the Argentine Peso. However, on Friday the stock price unexpectedly jumped up 27%.

Background:

Argentina has been in a financial crisis for quite some time. According to this wiki link:

The Argentine debt restructuring is a process of debt restructuring by Argentina that began on January 14, 2005, and allowed it to resume payment on 76% of the US$82 billion in sovereign bonds that defaulted in 2001 at the depth of the worst economic crisis in the nation's history.