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Movie is about a village and a monster.

There is a monster or creature outside of the village and all the inhabitants are afraid of it. A woman who is searching for her fiancé in Iceland comes upon the creature and the creature says that it was there when time began and remembers everything and that humans are a figment of his imagination and that he created humans to keep him company at the beginning of time because he was lonely.

He states that if he is killed humans cease to exist as well because we are from his mind. Eventually the villagers kill the creature. The screen fades to black and credits roll.

EDIT: I was just informed by my girlfriend that the movie was made in the late 90s or early 2000's and it is in fact a journalist looking for her husband in Iceland who encounters the creature and interviews him.

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When you state this:

I was just informed by my girlfriend that the movie was made in the late 90s or early 2000's and it is in fact a journalist looking for her husband in Iceland who encounters the creature and interviews him.

What you're saying seems to point to the 2001 Hal Hartley film No Such Thing:

Beatrice (Sarah Polley) is a young woman working in a media center under a woman known only as The Boss (Helen Mirren). She receives a recording from her fiancé Jim, who has been sent as part of a small production crew to Iceland to investigate a Monster that lives there. Determined to find her fiancé, Beatrice convinces her boss to send her to Iceland, but her plane crashes. She is the only survivor and, in order to walk again, undergoes an extremely painful, radical surgery. As she recovers, she befriends Dr. Anna (Julie Christie), who helps her travel to the remote village where the monster lives.

No Such Thing No Such Thing US movie poster

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    +1 Rad movie! A meditation on the many meanings of "monster." Hope you don;t mind my adding the US movie poster... – Lexible Aug 24 '15 at 5:12
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    This is definitely the answer... and the tone and feel is to my mind true to early Hal Hartley films (and that's a good thing), albeit a bit more fantastical. – Lexible Aug 24 '15 at 5:16

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