Global Credit Crunch Will Not Harm Iceland Airwaves Festival

The Global financial crisis, which this week struck the heart of Iceland's economy, will not affect the Iceland Airwaves festival, organisers have said.

The 10th anniversary of the festival, which takes place next week, will go ahead as planned with performances from Vampire Weekend, CSS and White Lies.

"The economical crisis does not affect the planning and promoting of the festival,” organisers said in a statement.

Iceland became the latest  victim of the credit crunch on Tuesday when the Icelandic government took control of the Landsbanki bank and declared it insolvent.

The fallout from the takeover has been felt in the UK, where hundreds of thousands of citizens and major councils hold accounts with Icesave, a subsidiary of Landsbanki.

Yesterday, the British Government used anti-terror legislation to seize Icelandic bank assets in the UK - a move which was condemned by Iceland's prime minister.

In their statement, festival organisers added: [We] are looking forward to lifting the spirits of the Icelandic people.”