United States-Mexico Debt Exchange and Border Development Act of 1989

United States-Mexico Debt Exchange and Border Development Act of 1989 - Sets forth objectives of U.S. economic cooperation policy with respect to Mexico, including: (1) economic growth; (2) resource-sustainable development; (3) poverty alleviation; and (4) pluralism.

Establishes procedures for the payment by Mexico of amounts into local currency accounts to promote economic development of Mexican communities within five miles of the U.S. border and environmental preservation along the border. Provides that such payments shall be deemed to satisfy requirements of equivalent debt payments by the Mexican Government to the United States. Directs the President to notify the appropriate congressional committees of any debt relief granted under this Act within 15 days after the relief is approved.

Authorizes the President to use certain funds made available under the Foreign Assistance Act of 1961 for grants to enable nongovernmental organizations to: (1) purchase debt obligations owed by the Mexican Government to any commercial lending institution or other private party; and (2) cancel such debt obligation (subject to the President's approval) to the extent that such Government makes available assets or policy commitments to promote economic development and environmental preservation along the border.