Banco Macro SA's board has established a repurchase program under which the bank will buy back up to 5% of its total capital stock, while the maximum funding amount for the program is up to 5.00 billion Argentine pesos.

"This decision has been adopted based on the current domestic and international macroeconomic context and the fluctuations in the capital market in general, which has materially impacted the price of domestic shares, including the quotation of the shares of the bank," the company said in a press release.

The buyback program will have an initial term of 30 calendar days, with a maximum payable price of up to 158.00 pesos per share.

The market turbulence followed news of the so-called "notebook" scandal in Argentina, in which corporations have been implicated for having alleged ties with politicians during the former Kirchnerism government. Argentina's Merval stock index sank 3.85% on Aug. 7 as of 5:30 pm local time and dropped 4% on Aug. 8, La Nacion reported. Banco Macro's shares fell 7.09% in Aug. 7 trading in Buenos Aires and 7.94% in New York, but were trading higher around midday Aug. 9.

Former Argentine Vice President Amado Boudou was recently sentenced to five years and 10 months in prison over corruption charges, BBC News reported. Jorge Brito, the former chairman of Banco Macro, took a leave of absence in November 2017 after accusations that he was involved in the scandal. He has denied any wrongdoing in the case.

As of Aug. 8, US$1 was equivalent to 27.54 Argentine pesos.