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By Anthony Cuthbertson
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Iceland's prime minister has resigned after questions were raised about his finances in the "Panama Papers" leaks, a member of the Icelandic government has said.
Sigmundur Gunnlaugsson is the first political figure to step down from office as a result of the scandal; he is expected, however, remain as leader of the Progressive Party.
Agriculture Minister and the Progressive Party's deputy leader Sigurdur Ingi Johannson broke the news of Gunnlaugsson's resignation to Icelandic broadcaster RUV.
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"The prime minister told [his party's] parliamentary group meeting that he would step down as prime minister and I will take over," Johannsson told a live broadcast.
Gunnlaugsson's resignation follows street protests in Reykjavik in which thousands of Icelanders took part.
Documents leaked on Monday allege that Gunnlaugsson and his wife set up a company in the British Virgin Islands that he then did not disclose to parliament. Critics say that the company's reported holdings in Icelandic banks mean Gunnlaugsson has a conflict of interest.
Gunnlaugsson has denied any wrongdoing.
Writing in Newsweek, Birgitta Jónsdóttir, parliamentary chair of Iceland's opposition Pirate Party said: "If this was a comedy it would be funny but this is actually our head of state. This is not what Icelanders are like and this is not what Iceland is."
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