i&i issues and images of iceland autumn 2008

8/14/2019 I&I Issues and Images of Iceland Autumn 2008

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Edito : Benedikt JhannessonDe i : Erlingur Pll IngvarssonPhoto phe : Geir lafsson, Pll Kjartansson, Pll Stefnsson and MBLTCI Edito i Co t t: Lilja VidarsdttirO the co e : Photo by Pll Kjartansson P i ti : safoldarprentsmija

Published for the Trade Council of Iceland by Heimur Publishing Ltd.www.icelandreview.com Copyright Heimur Publishing. No articles in the magazine may be reproducedelsewhere in whole or in part without the prior permission of the [email protected]

Photo: Pll Kjartansson


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4 On anD OffRecord Salmon Catch in YtriRang

A Film Debut by a Veteran A Young Designer Culture Night a Success in the Rain

6 MOrE aTTraCTIvE TO fOrEIgn TOurIsTsThe devaluation of the Icelandic krona has an upsidefor travelers.

8 Hanna BIrna KrIsTj nsD TTIr TaKEs OffICEIn rEyKjav K

The fourth mayor in less than a year.

10 Our sIlvEr BOysIceland takes second place in handball at the Olympics.

12 an OPEra HOusE In ICElanDIcelandic architects win competition to design anopera house in Kpavogur.

13 frOM sHEEP TO sTuDEnTs A sheep farm becomes an international center for Icelandic culture and nature.

14 rECyClIng THE naTO BasE Academics replace air force personnel.

15 sOlITary COnfInEMEnTIf you want to get away from it all, there is no better place than Hornstrandir.

16 arT By THE POnDThe finest collection of Icelandic art may be found atthe National Gallery of Iceland.

17 Dr. BragI TaKEs BEauTy OsCarProving that beauty and science do mix.

18 sCrEaM!The Icelandic thriller is here to stay.

20 a DIary Of BusInEss anD POlITICsThe top stories in business and politics in Icelandfrom June to September 2008.

22 a yOung ExECuTIvE aT glITnIr BanKLrus Welding has been CEO of Glitnir since spring 2007.

23 ICElanDIC DEsIgnThree pieces from designer Thrunn rnadttir

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Ministry for foreign AffAirs

r g 25, Is-150 r k v k. t +354 545 9900 F x +354 562 4878v @ . .i www.mf .i

inVest in iCeLAnD AgenCy B g 35, Is-105 r k v k. t +354 561 5200 F x +354 511 4040i f @i v .i www.i v .i

trADe CounCiL of iCeLAnD B g 35, Is-105 r k v k. t +354 511 4000 F x +354 511 4040ic d @ic d .i www.ic d .i


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On and OffI&I

Country Wedding:

a fi m Deb t b vete

A new film by an Icelandic director is always interestingnews. The movieCountry Weddingby Valds skarsdttir premiered in August 2008. Valds is no newcomer to movies.She is an award-winning Icelandic film editor whose work includesThe Celebration, Les Misrables, Finding Forrester and

Eternal Sunshine of the Spotless Mind . She received multipleawards in early 2005 for her work onEternal Sunshine of the Spotless Mind . In addition, she has twice won the Danish Film

Academys Robert Award for Best Editing.Country Weddinghas been well received by audiences and

critics alike. The movie is a comedy with serious undertones.The story revolves about a bride- and groom-to-be, who aregoing on separate buses to their wedding in a small country church. It turns out that neither the drivers nor anyone elseon the buses know exactly where the church is located and aninteresting and confusing sequence of events is set in motion.c

Sports:

reco d s mo C tchi yt ir Salmon rivers in Iceland have been very abundant this summerHowever, none has come close to Ytri-Rang in South Iceland, whichas yielded over 10,000 salmon. In the space of three days, over 1,10salmon were pulled from their natural surroundings. Admittedly it waby the first group that was allowed to use worms as bait. But even thereal sportsmen with flies only caught some 8,000 salmon over thcourse of the summer.

The river is literally stuffed with fish, a group of happy anglerclaimed, something nobody would dispute. We once caught 25 salmoin two hours. Mind you, they did have two rods. Ytri-Rangs sister river, Eystri-Rang, produced over 7,000 salmo

This must be some sort of world record, one exhausted fishermasaid.c

P h o t o :

G e I r

l a F s s o n

Di ecto v d k dtti . P h o t o :

M o r G u n B l a I / K r I s t I n n


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Annual Festival:

C t e ni ht s ccei the r iThe 13th annual Culture Night was held in Reykjavk onSaturday, August 23. Although the name would suggest oth-erwise, Culture Night is also celebrated during the day, and isan important cultural, artistic, musical, food and sport-relatedfestival. It is also the day of the Reykjavk Marathon.

Held in late summer, Culture Night is often rainy, and this year was no exception. However, the unfortunate weather did not prevent people from going downtown and enjoyingeverything the festival had to offer.

In the crowded city center shops, galleries and organiza-tions displayed their products and introduced their servicesin booths. Fresh carrots, hot chocolate, designer hats, vintageoutfits and paintings were for sale, a local bakery offeredpassers-by a taste of its cakes and breads and the Nordic

Association introduced the latest in Nordic cooperation.c

On and Off

a yo De i eDesigner Thrunn rnadttir may not be able to stop time,but she can certainly slow it down. The 25-year-old dynamosclock is already making regular appearances on design blogsand in the media, including a mention inThe New York Timesfor her role in the budding Slow Design movement. Besides theclock, she has assembled quite a peculiar portfolio of buzzingwall-hangings, nationalistic chocolates, athletic tableclothsand hypercolor radiators. Thrunn says: Behind every pieceis some little story, a twist on objects we are familiar with. Iwant to make people curious the moment they see the piece. Itshealthy for a designer or artist to make an effort to study her own background and heritage. Especially because in these timesof globalization where you can observe whats happening inart and design anywhere in the world, we probably spend moretime browsing the Internet than reading folktales or going tothe national museum. See featured samples of Thrunns work on page 23. c

Success:

De i e Th dtti .

P h o t o P

l l s t e F

n s s o n

P h o t o :

M o r G u n B l a I / j

l u s


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Tourism

One unusual feature stands out. Most often river fish try toavoid sunshine and warm weather. This year a record number of salmon has been recorded in most rivers. Nobody knowswhy this is but anglers are happy not to have to wait in the rainto stand a chance in their struggle with the clever fish.

Other sportsmen are also pleased. One of the Issues & Imagesstaff met a golfer from Africa who had come to the country tofind a mild climate with little rain. He was not disappointed.The midnight sun was an extra bonus that he had not heardabout.

The biggest surprise? I knew almost nothing about Icelandwhen I came, but was warned about the high prices. But my experience has been that they are reasonable.c

P h o t o :

P l l K j a r t a n s s o n

Photo: Pll steFnsson


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One year ago, Vilhjlmur Th. Vilhjlmsson had beenmayor of Reykjavk for over a year. Most peopleexpected him to serve the rest of the term, as tradi-tionally Reykjavk mayors have kept their jobs for extendedperiods. However, in recent years the mayors seat has beenanything but secure. After Ingibjrg Slrn Gsladttir (nowMinister for Foreign Affairs) resigned from her post in 2003,having served for nine years as mayor of Reykjavk and theleader of the left-wing Reykjavk Coalition, the city has hadsix different mayors.

In 2006, the Reykjavk Coalition did not present a slate of

candidates and the outcome of the election was somewhatunclear in that there was no clear right- or left-wing major-ity. The right-wing Independence Party won seven seats onthe city council, the Social Democratic Alliance four, theLeft-Green Party two and the Progressive and the LiberalParties one seat each. After the election the IndependentParty and the Progressive Party formed a majority. A dis-pute involving Reykjavk Energy Corporation ended thatcooperation and the Liberal Party formed a new majority

with the other three parties. Dagur B. Eggertsson of theSocial Democrats then became mayor.

Some three months later, lafur F. Magnsson broke withthat coalition and joined the Independence Party in forminga new majority. He became mayor and lasted almost sevenmonths in office. Then, in August 2008, the IndependenceParty decided it wanted to work with the ProgressiveParty again. This time Hanna Birna Kristjnsdttir becamemayor.

Hanna Birna became the leader of the IndependenceParty delegates in Reykjavk in June 2008. She is 41 years

old and holds degrees in political science and internationalpolitics. She was a member of the city council in 2002 andwas employed by the Independence Party from 1995 to2006, the last seven years as Deputy Manager.

So how long does she expect to stay in office? She saysshe is aiming for the rest of the term. Opinion polls indicatethat this majority is more popular than the one before it.However, it only has the support of about a third of the vot-ers. Most people now seem to want the carousel to stop.c

H Bir Kristj s ttirT kes off i e i Re kj vk

The fourth mayor in less than a year.

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A t 7:45 am on Sunday, August 24 the streets of Reykjavk wer virtually empty. Only a few taxis trawled the deserted roadsBut most of the nation was awakewatching television.In homes around the country, in sports halls with specially erecte

screens and in Icelands cinemas, the population watched as ouboysthe mens handball teamwere defeated by France, 28-in the gold medal match and final event of the Beijing OlympiGames.

But it wasnt really a defeat.The handball team had accomplished what no other Icelandic tea

had. They were bringing home a silver medal, only the second in th

o rSi ver B sIceland takes second place inhandball at the Olympics.

O ympi s 2008


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a oper H se

i I e

It is good to live in Kpavogur! is thpolitical slogan of Kpavogur Mayor GunnaBirgisson. Certainly no one can dispute thathe city, which lies adjacent to Reykjavkhas been good to the arts. It is the site ofan attractive art gallery as well as the firstconcert hall in Iceland exclusively designedfor performing music. Moreover, a few yearago the mayor expressed his wish to build thefirst Icelandic opera house in Kpavogur.

Music lovers have much to look forwardto. A concert and conference hall is risingon the oceanfront in Reykjavk and shouldbe ready in just over a year. In August theresults of a competition for the design ofan opera house were announced. The win-ners were Arkthing architects, with what thepanel of judges called a convincing and welexpressed idea.

The opera house will be situated close tothe Kpavogur concert hall and art galleryon what could be called an art square ontop of a hill in Kpavogur. The square couldalso be called art meets religion because thKpavogur church with its distinctive archeis on the same hill.

The mayor was pleased: This is one stetowards our goal. An important step. If wewant to call ourselves a cultured nation we

must have an opera house.The Icelandic Opera Company, which ha

been operating in an old movie theater indowntown Reykjavk, recently celebrateits 25th anniversary. The theater has alwaysbeen looked upon as a temporary shelter forthe opera.

The next step is to start formal planningfor the construction and to secure financ-ing. It will take time, but Mayor GunnarBirgisson thinks it is realistic to expect thawithin three or four years this important artform will finally have a permanent home in

Iceland.c

Th arts

Icelandic architects win competition to design anopera house in Kpavogur.


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Fr m Sheep t St e tsA sheep farm becomes an international center

for Icelandic culture and nature.

A sheep farm becomes an international cen-ter on Icelandic culture and nature.

Svartrkot (Black River Cottage) is the farmhighest up in the Brdardalur valley in north-ern Iceland, abutting ddahraun, the wildestuninhabited lava interior in Iceland. To the

south and east lie the rugged uninhabitableareas of the highlands, the domains of glaciersand lava fields, while a colorful cultural his-tory is also to be found further down the val-ley, towards the lowlands.

Svartrkot maintains a handsome sheephusbandry, and there is excellent trout fish-ing in the lake. Of a few turf outbuildings stillin use, one is for smoking the local trout. Tothe untrained eye it does not look a researchcenter.

This summer, one course was run on innearby Kidagil, based on the model of a gen-

eral course that was successfully launched at a

conference in the summer of 2007. The coursein 2008 had 25 participants from the depart-ment of Human Geography at the University of Edinburgh who explored Icelandic nature,listened to lectures, history and culture andalso enjoyed activities such as whale-watching

out of Hsavk under the midnight sun duringthe summer solstice, and eating and drink-ing at light-night barbecues in the wilds near Svartrkot and Mvatn.

The courses at Svartrkot are supervised by the Reykjavk Academy and are designed to getthe most from the farm, the settlement and thewilderness, as well as the experience of livingin that location. They also illustrate the dynam-ic connection between past and present andthe integration of ecology with cultural studies.The Svartrkot courses try to reconnect todayssociety with the environment, for instance by

allowing participants to fish in the lake.

A diverse range of teaching methodincluded lectures at the center, 2-3 day

journeys into the central highlands, day tripsto local history museums and to the com-munity archive at Hsavk, as well as visitsto spectacular waterfalls and geothermal

areas. Specific programs emphasized material culture, folklore, craftsmanship, cuisineand horsemanship.

In 2009 three courses at Svartrkotwill focus on cultural history, geographyand environmental studies. The courses areintended for students with an interest incultural studies, literature, history, anthro-pology, folklore, geography, geology, ecol-ogy and natural science, with the focus onintegrating the study of culture and nature.

It is very hard to think of a more appropri-ate place for such studies.c


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The fox didnt seem to mind that he had

human company. While we were preparingour cameras he looked at us long and hardand showed no trace of fear. However, sud-denly he seemed to remember he had other things to do and disappeared into a maze of driftwood on the beach.

Issues & Images had joined a group thatwas spending five days in a stunning locationon the northern West Fjords. Many consider Hornstrandir, with its fjords, mountains and

valleys, to be the most beautiful part of Iceland. The landscape radiates mystery anda harsh beauty. The most generous fishinggrounds in Iceland are close by and for cen-

turies the West Fjords were the most densely populated area of Iceland.

Most people come to this secluded locationby boat. No roads lead to Hornstrandir, only hiking trails. If you decide to go on footmake sure that you are in top form. Mostdays you will have to walk 15 to 25 kilo-meters, climb mountains, take difficult pathsand carry your supplies on your back. But for a real nature lover, it is worth it. We took the boat a part of the way. Our

captain, Reimar Vilmundarson, knows thearea well. He told us that he had ferriedalmost 2,000 passengers this year. Most godirectly to Hornbjarg, a distinctive moun-

tain by the sea. It is a two hour trip fromNordurfjrdur, the last small village you candrive to along the way.

Hornstrandir no longer has any humaninhabitants. Around the mid-20th centuryalmost all the residents decided to leave. Thdark and cold winters became too much fopeople in a modern society. Consequently

you can now find many wild animals aHornstrandir, that dont mind seeing you. After five days Reimar came to pick u

up. We left the foxes and eagles behind andstepped onto the boat. We sailed past someseals that watched us with their human eyeand seemed to wave goodbye.c

If you want to get away from it all, there is nobetter place than Hornstrandir.

R r tio

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fi art

art b the PThe finest collection of Icelandic art may be found at the National Gallery of Iceland

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In the heart of Reykjavk, on the banks of theTjrnin pond, youll find the National Gallery of Iceland. The gallery hosts exhibitions by contemporary artists and also exhibits worksfrom its permanent collection of Icelandic art,covering in particular 19th and 20th century art, both Icelandic and international. The per-manent collection incorporates key Icelandicworks from the 20th century by the nationsleading artists, and the gallery owns the most

valuable collection of works by Icelandic art-ists in the country.

The building in which the gallery is situatedhas served many functions. In the 1960s it wasthe main nightclub in Reykjavk and many of the current political and cultural leaders in

the country were frequent guests on its dancefloor. It is rumored that the young Bill andHillary Clinton once went there while on astopover to Europe. Prior to that it was an icehouse, used to store blocks of ice throughoutthe year before the invention of the refrigera-tor.

Even though the building was not designedas a gallery it has four modern exhibitionhalls. The permanent collection, which nowincorporates more than 10,000 works, is con-stantly expanding. New works by young art-ists are added every year along with selectedworks by older painters, in order to improvethe collection.

The collection also includes an impressive

array of works by internationally renownedartists such as Pablo Picasso, Edward MunchKarel Appel, Hans Hartung, Victor VasarelRichard Serra and Richard Tuttle. In the collection are also works by many of Denmarkfinest artists, including Joakim SkovgaardChristian Blache and Peter Kryer. Generougifts from Icelandic artist such as FinnuJnsson, Gunnlaugur Scheving and Gudmund

Andrsdttir have added to the valuable collection. After you have been to see one of the exhibi-

tions it is good to relax over a cup of coffeeand a sandwich. Of course you can also takIcelandic art home with you in the form ofbooks, catalogues, posters and postcards.c


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dr Br gi T kesBe t os r

Proving that beauty and science do mix.

Dr Jn Bragi Bjarnason, Professor of Biochemistry at the University of Iceland,has devoted his scientific career to research-ing beauty. Of course many of us spend a fair amount of time studying beauty, but maybe notfrom a scientific perspective.

His extensive research initially focused on thetherapeutic value of enzymes for arthritis andwound healing. Clinical evidence of their effec-tiveness was so compelling that it prompted Dr Jn Bragi to explore their cosmetic potential aswell. This in time led to production of the Dr Bragi cosmetic line. It has been well receivedand on Monday, April 21, 2008 Dr Bragi wasawarded the title Best New Brand at the pres-tigious CEW Awards at the Sheraton Hotel,

London. The awards have become known asthe Beauty Oscars as each winner is chosenby a panel of 600 beauty industry insiders.

Dr Bragi is a brand new skincare treatmentline which is considered a breakthrough inskincare technology using a totally uniquepatented Penzyme formulation from Iceland.

Dr Bragis Age Management Marine Enzymeis the signature product in a range developedto combat the signs of ageing. It is an oil-freebut intensive moisturizer, which stimulatescirculation and cell renewal and even helps tofade wrinkles. Anti-ageing products normally promise a

reduction in wrinkles and fine lines. Withonly one active ingredient, this is a fragrance,

chemical and preservative free alternative tthe complex cocktail of products often used tcombat the signs of ageing.

The unique anti-inflammatory formulatioof Penzyme helps slow the signs of ageing brejuvenating tired skin and adding moistureRadiance comes from within as blood flois increased providing constant moisture anfirmness. Penzyme helps skin repair itself bencouraging the skins defense and regeneration mechanisms, making it suitable for askin types.

The Dr Bragi range consists of three producincluding Dr Bragi Age Management MarinIntensive Treatment Mask and the forthcominlaunch of Dr Bragi Face and Body Salvation.c

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The Icelandic thriller is here to stay.

SCREAM!

Since 1997, over 70 crime novels havebeen published by Icelandic authors(relative to population, thats the equiv-alent of 15,000 crime novels being publishedevery year in the UK) and they are toppingthe best-seller lists year in, year out. Someof these authors are being translated into asmany as 30 languages.

I think Im going to kill a Pole and a bil-lionaire, mutters Aevar rn Jsepsson, slyly.Sitting in his cramped, book-lined study where the shelves are ordered by author and the hierarchy of influences is boldly proclaimed, his comment sends a shiver upmy spine. Thankfully, hes talking about hisnext novel. Arnaldur Indridason, considered by many

to be both the instigator of the trend andits most skilful proponent, has won Britainscoveted Crime Writers Association GoldDagger as well as the Scandinavian GlassKey award twice. Arnaldur is a pioneer,

says crime author Stefan Mni, his successis good for all of us. He has created a read-ership and put Icelandic crime fiction onthe map. And while Indridasons interna-tional recognition may be significant (hessold more than four million books world-wide), equally noteworthy is the fact thatwithin the last few years, seven out of theten most borrowed books in Icelands ownNational Library were written by him. Arnaldur Indridasons first crime novel

Synir duftsins (Sons of Dust) and StellaBlmkvistsMordid stjrnarrdinu(Murder at the PMs Office), together marked thebeginning of the new wave of crime fictionthat is still very much alive today.

By 2000, a handful of other writers had joined Indridason and Stella Blmkvist(a nom de plume still disputed to thisday), such as rni Thrarinsson, Aevar rn Jsepsson, Thrinn Bertelsson, Viktor

Arnar Inglfsson, Yrsa Sigurdardttir and

Stefn Mni. These writers were in part folowing on from the success of Indridasonpioneering work, but the increase in intereson the part of authors (some of them alreadywell-established but coming to this genrefor the first time) was also partly due to theestablishment of the Icelandic Crime Writer

Association in 2000.

Following an aggressive policy of privatization introduced in the early 90s, and Icelandentry into the European Economic Arein 1994, the Icelandic economy saw hugegrowth and with it the nation itself experi-enced huge cultural shifts. Globalization hiIceland hard and fast. And theres no sign of any of this abating

Why should it? Iceland is a wealthy, modercountry enjoying the benefits of its recentprosperity. But of course the velocity of theschanges comes at a price, and Icelanderfind themselves addressing some perplexinissues.c Tobias Munthe

lit r tur


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a tho Th i Be te o w ite d k comic th i e .

Oppo ite p e: th ee book b a d I d id o who ecei ed theg Ke w d, ite t e p ize o the be t no dic c ime o e , i2002 d 2003, d wo the CWa go d D e aw d i 2005o hi o e si e ce o the g e.


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a di r f B si ess P iti s

J e 8 The construction of a new aluminumsmelter began in Helguvk. The ground was bro-ken and the first pot room is to be ready in 2010.The smelter will have a production capacity of 150,000 tons per year and is expected to beginsmelting in 2010. The Nordurl company still hasto apply for an operating license for the smelter as well as permission for emission of greenhousegases.

J e 12 Skyr, one of the most popular foods inIceland, will be available in British stores thisfall. Skyr is a soft fresh cheese that has not been

strained and is similar to yogurt. It is high inprotein and calcium but low in carbohydratesand fat. MS, Icelands largest dairy productioncompany, is posed to put skyr on British markets.Test shipments have already been sold in Britishhealth food stores.

J e 12 Icelands estimated income for the exportof goods in 2008 suggests that aluminum willexceed fish as the largest export from the coun-try. The estimated export value of aluminum for 2008 is ISK 165 billion (USD 2.1 billion). That isdouble the income from last year. Fishing indus-try exports are expected to total around ISK 130billion (USD 1.6 billion) so aluminum exports will

account for 45 percent of Icelands exports, withocean products falling to 36 percent.

J e 28 Minister of Industry ssur Skarphdinssonmet the assistant director of US aluminum com-pany Alcoa to sign a new declaration of intentfor the planned aluminum smelter at Bakkinear Hsavk in Northeast Iceland. A declara-tion of intent from May 2006 is being updated,Skarphdinssons assistant Einar Karl Haraldssonsaid. In the last declaration of intent an annual250,000-ton aluminum production and annual400-megawatt energy usage was agreed on.

J 12 Icelands Minister of Justice BjrnBjarnason discussed the possibility of Icelandadopting the euro through special agreementswith the European Union without joining the EU,and his comments sparked a debate. Bjarnasonsaid that by adopting the euro Iceland wouldadd the third pillar to its cooperation with theEU, the other two being Icelands membership inthe European Economic Area and the Schengen

Agreement

J 28 The 12-month inflation in Icelandreached 13.6 percent, according to new data fromStatistics Iceland, and has not been higher for 18 years, or since August 1990. Consequently

the capital of mortgages grows and debt burdenincreases. The recent depreciation of the ISK hasan impact on inflation, as does the six percentincrease in the price of imported goods, whichaccounts for almost two percent of the 13.6percent inflation.

a g 1 Icelands President lafur Ragnar Grmsson

was re-inaugurated. The ceremony launched thepresidents fourth term in office. One term isfour years and no one decided to run againstGrmsson for the current term.

a g 5 The online edition of the British busi-ness newspaper Financial Timesreported that

judging by the Q2 results of Icelands threelargest commercial banks Glitnir, Landsbankiand Kaupthing, their operations are on solidground. Although the credit crunch has certainly affected the earnings of Glitnir, Landsbanki andKaupthing, their financial strength, core opera-tions and main sources of revenue still deliveredgood results.

a g 5 Rbert Wessman announced that hewill step down from his position as CEO of the Icelandic pharmaceutical company ActavisGroup after ten years of leading the company.He will be replaced by Sigurdur li lafsson,

Actavis current deputy CEO. Wessman willnow focus on his investment company SaltInvestment, but will continue to have a seat onthe board of Actavis.

a g 7 The vast majority of shareholders of SPRON savings bank agreed on a merger withKaupthing Bank. With the merger, SPRON share-holders will receive shares in Kaupthing andExista investment company. The rate of sharesin SPRON was estimated at ISK 3.83 (USD 0.05,EUR 0.03) per share, which is 15 percent higher than the rate on June 30 when a declaration of intent on the merger was signed between thetwo banks. Kaupthing has also acquired a 70percent share in Sparisjdur Mrasslu, another savings bank.

a g 15 The Independence Party-Liberal Party majority coalition on the Reykjavk City Councilcame to an end when leader of the IndependenceParty Hanna Birna Kristjnsdttir and leader of the Progressive Party skar Bergsson announced

their cooperation. Their decision also put an ento lafur F. Magnssons 203-day stint as mayoof Reykjavk. Kristjnsdttir will be the capitanext mayor, the fourth mayor to serve this termwhich began in 2006, and Bergsson will be chairman of the city council.

a g 17 Investment company Fons sold its sharein Iceland, a British food chain. The sale is part of transactions between Fons and StodiInvestment. Fons received shares in NortherTravel Group which owns Sterling airlines, IcelanExpress airlines and other companies.

a g 18 Almar rn Hilmarsson returned to thhelm of Danish Sterling airlines. Almar rn hapreviously been CEO of Sterling and followinFonss takeover of the company he returned to hiprevious position.

a g 18 Economist Jn Steinsson of ColumbiUniversity said in a public lecture that Icelandeconomic future had been painted too bleakly. Halso stated that the government had been unfairlycriticized for waiting to take large foreign loans

Sept 2Danish newspaper Nyhedsavisenis declaredbankrupt. The daily was founded by BauguGroup investment company based on the succesof Frttabladid in Iceland. Both newspapers werdistributed free of charge. Baugur Group sold paof its share in Nyhedsavisento Morten Lund, aDanish investor, earlier this year.

Sept 2 Prime Minister Geir H. Haarde announcthat the government has taken a EUR 300 millioloan on terms that are much more favorable thanthe credit default swaps for the government.

Sept 9Financial companies VBS and Saga Capitannounce that they are engaged in merger talks

A merged company would have ISK 16.5 billio(EUR 130 million) in own capital.

Sept 10 Eimskip transport company share pricfell by more than 20% in two days on rumors thaa USD 200 million (EUR 141 million) loan takenthe buyers of British tourism company XL LeisuGroup will have to be paid by Eimskip. BjrglfGudmundsson, majority owner and chairman oLandsbanki Bank, and his son Bjrglfur ThBjrglfsson, chairman of financial and investment companies Straumur-Burdars and Novatodecided to step in and lend Eimskip the money tpay off the loan. The father and son were alreadthe principal owners of Eimskip through variouholding companies.c

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B ki g

When Glitnir Bank announced that a new CEOwas taking over, people listened. Who is Lrus

Welding? they asked. He had been working atLandsbanki in London and was not well knownin Icelandic business circles. But he was bold

when he took over and said he would continuebuilding up Glitnirs strongholds in variouscountries, especially the Nordic countries andBritain. We see many opportunities. Our nicheis the food industry and energy production. Weknow those fields well and will build on them.

The first year and a half turned out to bemuch more difficult than the 30-year-old chief executive could have imagined. The Americanmortgage crisis spread to Europe and Icelandwas not immune. Glitnir had to lay off over 200employees. Members of the board and the CEOall reduced their salaries by 50 percent as part of the banks cost-reduction efforts.

Lrus does not deny that the past year hasbeen interesting. However, he is certainly not resting on his laurels. After many prosper-ous years, Icelandic bankers had grown used tosteady growth. The landscape is now completely different, but Glitnir has worked hard to adaptto new circumstances. In interviews Lrus hasnever underestimated the difficulty of the situ-ation at hand best stresses that Glitnir is wellequipped to weather the storm.

Lrus graduated from the business programat the University of Iceland and has worked inbanking since then. He is very competitive andeven though being CEO of Glitnir is a 24-hour

job he takes the time to exercise. In the Glitnir-sponsored Reykjavk Marathon he ran a half marathon this year. It may be similar to his chal-lenging job, in that he still has to complete thesecond half of the Glitnir marathon.c

Lrus Welding has been CEO of Glitnir since spring 2007.

Photo: GslI KrIstjnsson

A You g Executive at G it ir Ba k


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ICElAndIC dESIGn

Blush

C t i o di to with he t- e iti eco ti . B e whe co d, t ed

whe o e 30C.

Three pieces from designer Thr r ttir .

Krummi

jewe t d b edo the e (p omi e ti Ice dic o k o e), whichco ect hi ob ect oit e t.

CloCK

O e be d d op e e i e mi te , eemi toow dow time. remo e the

be d om the co to toptime d we them p o do d o eck.

More about Thrunn rnadttir on page 5.


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. trADe CounCiL of iCeLAnD . www. c ad .

. inVest in iCeLAnD AgenCy .

www v

P h o t o :

P l l s t e F n s s o n

i&i issues and images of iceland autumn 2008

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