As part of an investment programme to boost national creative industries, the Icelandic Ministry of Finance and Economic Affairs announced on Tuesday it intends to inject a total of ISK 1.410 million (around
"The 2013-2015 Investment Programme is part of a new advance, following the economic collapse which is aimed at reinforcing the economic recovery and growth," said the government in a statement. "The Programme is based upon the assumption that, given the current economic situation, it is advisable to devote a considerable portion of the funding which has been tied up in banks, together with part of the resource fees, towards organised and focused investment in infrastructure to the public benefit".

The financial package still has to be passed by Parliament by the end of the year, but if it goes through, the extra ISK 470 million (€2.9 million) annual funds for the next three years will be a welcome relief for the Icelandic film industry that has endured severe cuts by 35% since 2009. "We still suffer from a very low currency, but if the investment programme is passed, film funds will be back on track to what they were before the financial crash in 2008," commented Laufey Guðjónsdóttir, head of the Icelandic Film Centre.

The extra cash for the next three years will come on top of the subsidies agreed last year as part of the new Film Agreement which stated that film funding would gradually increase from ISK425 million in 2011 to ISK500 million in 2012, ISK530 million in 2013, ISK600 million in 2014, and ISK700 million in 2015.

Only three feature films were made in Iceland in 2011 but production output should double with the new film budget. Two films are currently in post-production: Marteinn Thorsson's comedy XL produced by Tenderlee Motion Pictures Company and the drama Horses, a Love Story by debut director Benedikt Erlingsson produced by Fridrik Thor Fridriksson. Ágúst Guðmundsson's horror comedy Spooks and Spirits produced by Ísfilm has just finished filming and Ragnar Bragason's coming of age Metalhead produced by Mystery Productions is still filming.