Promotion of Democracy in Ethiopia Act of 1986

Promotion of Democracy in Ethiopia Act of 1986 - Declares U.S. policy: (1) regarding human rights and opportunities; (2) condemning the resettlement program and human rights abuses in Ethiopia; (3) calling for human and civil rights and for free elections in Ethiopia; and (4) supporting non-communist resistance forces in Ethiopia.

Amends the Foreign Assistance Act of 1961 to add Ethiopia to the list of communist countries.

Prohibits Ethiopia from receiving nondiscriminatory (most-favored-nation) trade treatment.

Prohibits the importation of coffee, coffee extract, essence, or concentrate from Ethiopia.

Prohibits the Federal Government and any U.S. person from making a loan or extending credit to Ethiopia or to any organization owned or controlled by Ethiopia. Exempts from such prohibition any loan or extension of credit agreed upon before enactment of this Act.

Directs the President, within 90 days of enactment of this Act, to issue regulations prohibiting any U.S. person from making any investment in Ethiopia. Excludes from such prohibition certain loans, investments in established Ethiopian businesses, and stock purchases of Ethiopian businesses.

Directs the Secretary of the Treasury to instruct the U.S. Executive Director to each of the relevant international financial institutions to oppose furnishing aid to Ethiopia.

Requires such sanctions against Ethiopia to terminate if the President certifies to the Congress that Ethiopia: (1) respects the human rights of its people; (2) has granted basic civil rights to its people; (3) has terminated and dismantled its resettlement program; (4) has established a legal system that assures the participation of all its people; (5) has held free and fair elections; and (6) no longer is host to troops from communist countries. Directs the President to report to the Congress every six months on the progress made by Ethiopia in meeting such objectives.

Provides for enforcement of this Act.