Iceland’s Prime Minister Sigmunder David Gunlaugsson resigned from his post on Tuesday. The move comes after his name surfaced in the Panama Papers.
Iceland’s President had refused Gunlaugsson’s request to dissolve the government and parliament and call a new election amid a dispute over the premier’s offshore tax affairs.
President Olafur Ragnar Grimsson said on Tuesday that he wants to consult with other party leaders first.
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Thousands of Icelanders protested outside parliament on Monday, demanding that Prime Minister Sigmunder David Gunlaugsson resign.
Leaked financial documents allege that he and his wife set up a company in the British Virgin Islands with the help of a Panamanian law firm.
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He is accused of a conflict of interest for failing to disclose his involvement in the company, which held interests in failed Icelandic banks that his government was responsible for overseeing.
Gunlaugsson has denied any wrongdoing.
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