Iceland Airwaves Festival To Go Ahead Despite Unpaid Acts

The Iceland Airwaves festival will begin later today (October 15th) – even though foreign bands have yet to be paid due to the global financial crisis.

The 10th anniversary of the festival is scheduled to feature performances from Vampire Weekend, CSS and White Lies.

Iceland has been one of the countries worst affected by the ongoing credit crunch, which has left a number of its banks involvement.

However, organisers have insisted that the festival will take place as planned and that bands will be paid in cash when they arrive in the country.

Event promoter Thorsteinn Stephensen told the BBC: "They will get paid on the day of the show in cash. It's not a very usual situation, but that's the way it has to be."

Speaking last week after it was revealed the Icelandic government had declared the Landsbanki bank insolvent organisers said they hoped the festival would have a positive impact on people's mood.

“[We] are looking forward to lifting the spirits of the Icelandic people,” they said.