Reykjavik: Iceland's Prime Minister Sigmundur David Gunnlaugsson has resigned from his position in the wake of recent Panama Papers leaks.
His resignation came hours after he threatened to dissolve the parliament and call for new elections.
Gunnlaugsson, 41, has been under pressure to resign since leaked financial documents showed that he and his wife Anna Sigurlaug Palsdottir owned an offshore company in the British Virgin Islands.
The left wing opposition on Monday presented a motion of no-confidence against Gunnlaugsson, which could be voted on as early as this week.
According to the leaked documents, Gunnlaugsson and his wife Anna Sigurlaug Palsdottir purchased the offshore company Wintris Inc. in the British Virgin Islands in December 2007.
He transferred his 50-percent stake to her in 2009 for the symbolic sum of one dollar.
He has insisted he never hid any money abroad, and says his wife, who inherited a fortune from her father, has paid all her taxes in Iceland.
