Foreign Debt Safety and Soundness Act of 1989

Foreign Debt Safety and Soundness Act of 1989 - Amends the International Lending Supervision Act of 1983 to direct Federal banking agencies to require a banking institution to maintain a special reserve against possible future losses on loans to a foreign sovereign borrower whose repayments are either in arrears or have been rescheduled at the borrower's request.

Establishes a minimum reserve amount and sets forth circumstances under which a Federal banking agency may waive such reserve requirements.