Third World Debt Regulatory Incentives Act of 1989

[AI summary unavailable — showing source text] Third World Debt Regulatory Incentives Act of 1989 - Amends the International Lending Supervision Act of 1983 to direct Federal banking agencies to require each nonparticipating banking institution to maintain reserves in specified amounts with respect to loans made by it to any highly indebted country. States that such reserves shall be charged against current income and shall be deemed neither part of capital and surplus, nor allowed as allowances for loan losses for regulatory, supervisory, or disclosure purposes. Directs the Secretary of the Treasury and each Federal banking agency to enter into multilateral negotiations with foreign governments in order to obtain their cooperation in providing incentives to banking institutions in their countries to reduce the amount owed them by a highly indebted country. Amends the Internal Revenue Code to deny nonparticipating banking institutions the tax deduction for bad debts made to highly indebted countries.…