Icelands Prime Minister Sigmundur David Gunnlaugsson addresses a session of parliament in Reykjavik, Iceland on April 4, 2016.
Photo by Halldor Kolbeins/AFP/Getty

Panama Papers: Iceland’s Prime Minister David Gunlaugsson resigns

Updated

Iceland Prime Minister Sigmundur David Gunnlaugsson will step down, the deputy head of his party said on Tuesday, after leaked files showed the premier’s wife owned an offshore firm with big claims on Iceland’s collapsed banks.

Sigurdur Ingi Johannsson, who is also currently minister of fisheries and agriculture, told reporters that the progressive party will suggest to its coalition partners in the Independence Party that he should become the new prime minister.

Earlier in the day, Gunnlaugsson asked Iceland’s president to dissolve parliament in the face of a looming no-confidence vote and protests over the “Panama Papers”, a leaked trove of documents revealing the financial arrangements of politicians and public figures from around the world. 

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Panama Papers

Panama Papers: Iceland's Prime Minister David Gunlaugsson resigns

Updated