International Debt Recovery Act of 1987

International Debt Recovery Act of 1987 - Amends the International Lending Supervision Act of 1983 to provide that in the establishment of capital adequacy levels for banking institutions, the appropriate Federal banking agencies shall require increased capital for such institutions exposed to country debt that has been classified by bank regulatory agencies in certain high risk categories, subject to specified conditions. Provides that the ultimate collectibility of debt shall be presumed, and increased capital shall not be required, in the case of countries that are demonstrating clear progress toward financial recovery and restored creditworthiness as indicated by specified factors. Provides that for countries not demonstrating such progress toward financial recovery and creditworthiness, the capital adequacy requirements shall be based on an evaluation of risk encompassing such factors as: (1) interruptions in debt servicing; (2) past and projected economic performance; and (3) secondary market valuation of the country's debt.

Amends the Bank Holding Company Act of 1956 to exempt from the prohibition on ownership or control by a bank holding company of voting shares of a nonbanking organization the acquisition of shares in a company which does no business in the United States except as an incident to its international or foreign business if: (1) the shares are acquired as a result of or in connection with a conversion or exchange of restructured obligations, principal, interest, or any other proceeds of any restructured obligations or obligations issued in exchange for any new money contributions, or any other obligation the repayment of which in nonlocal currency and immediately available funds is prohibited under local law; (2) the bank holding company has received prior approval by the Federal Reserve Board for transactions in excess of the smaller of $50,000,00 or two percent of capital or, for all other transactions, provided prior notice to the Board; and (3) the shares are not held for more than ten years or, if later, five years after the investment may be legally repatriated in its entirety subject to the Board's authority to extend such period for good cause.

Requires the Federal bank regulatory agencies to report semiannually to the specified congressional committees concerning steps taken to implement this Act, including specified information concerning the category of debt of various countries and the exposure and capital and reserve position of the 24 largest U.S. banks.