International Financial Stability Act

International Financial Stability Act - Amends the Bretton Woods Agreements Act to authorize the U.S. Governor of the International Monetary Fund to consent to a specified increase in the quota of the United States to the Fund. Authorizes the Secretary of the Treasury to increase the amount of outstanding loans to the Fund.

Directs the U.S. executive director of the Fund to work with Fund officials and other specified parties to develop a plan for each country experiencing financial difficulties to convert that country's high interest short-term debt into a low interest long-term debt. Sets forth the maximum interest rate for such long-term debt.

Requires each plan to assure that the total payments required of the involved country are both a manageable and prudent percentage of the annual export earnings of such country. Directs the U.S. executive director to request the Fund to establish an insurance fund to ensure the repayment of rescheduled debts. Requires such insurance fund to be financed by a surcharge on the rescheduled debt balance.

Requires the U.S. executive director to vote against an additional loan for any country if the loan does not meet certain conditions, including the existence of an operational insurance fund. Defines "long-term debt" to mean any debt with a maturity of not less than ten years.

Requires the Financial Institutions Examination Council to require that a bank which has made a loan in a foreign country which cannot be repaid according to its original terms shall increase its loan loss reserves by a specified amount. Requires the Council to waive such loan loss reserve requirements for loans which are restructured according to this Act.

Requires the Council to establish limits on the total amount of short-term loans which a bank may make in any one country. Authorizes the Chairman of the Council to waive such limitations on a bank-by-bank basis for not more than one year upon determining that such short-term loans are required to preserve the soundness and stability of the world financial system.

Requires the Chairman of the Council to report the limitations on short-term loans established, along with the Council's estimate of the amount of such loans which will have to be converted into long-term debt under this Act. Requires the U.S. executive director of the International Monetary Fund to work with other Fund officials and with bank regulators in foreign countries to establish uniform short-term lending limitations for all banks involved in international lending.