Iceland’s national broadcasting company RÚV will present a new operating budget today, including an estimated ISK 550 million (USD 3.9 million, EUR 3.0 million) cut to its operations, close to 15 percent of its current budget. Up to 30 employees are expected to lose their jobs.
RÚV chairman Ómar Benediktsson and RÚV director Páll Magnússon confirmed to Fréttabladid that a new budget would be presented today, but would otherwise not comment on the imminent changes to RÚV’s operations.
Allegedly cost of capital is causing difficulties to the national broadcasting company. Uncertainty also surrounds its operations because of a planned head tax, which will take effect on January 1, 2009, and expected limitations to RÚV’s activities on the advertising market.
Click here to read about difficulties facing private television channel Skjár 1.
