Foreign bands yet to be paid at Iceland Airwaves

The likes of Biffy Cylro, These New Puritans and Young Knives are yet to receive payment for their pending performances at Iceland Airwaves.

Bands' fees are usually paid in advance on their shows, but due to the economic collapse of Iceland's banks, artists are set to receive payments in cash on the day of their performances.

Speaking about the unpaid fees event promoter Thorsteinn Stephenson told BBC News: "We have a longstanding working relationship with most of the agents. We've been doing this for 10 years now and I believe there's trust there, so the bands will get paid in cash in Iceland if we don't manage to make the transfers.

"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."

The festival, which is held in Reykjavik, will still go ahead as previously reported, but organisers confirmed that they will lose money on the event.

"We're not making any money. The cost of artists has almost tripled," Mr Stephenson said, "and on top of that all, airline tickets have gone up and all our costs have gone up, so we are going to have to support this one with our own money."

If the country continues to struggle economically Mr Stephenson admitted the festival looks unlikely to continue in its current form.

Crystal Castles, CSS, Simian Mobile Disco and Vampire Weekend will all perform at the festival alongside a myriad of Icelandic acts.

Check back for our Iceland Airwaves blog.