(VOVworld) – Iceland’s Prime Minister Sigmundur David Gunnlaugsson resigned on Tuesday over “Panama Papers” disclosures.

Iceland's Prime Minister Sigmundur David Gunnlaugsson (Photo by: AFP)

The resignation came after the Panama Papers revealed that Gunnlaugsson has been using an offshore firm to allegedly hide investments worth millions. Opposition leaders then called for a vote of no confidence. Gunnlaugsson denied any wrong doing but resigned in response to mounting pressure.

Earlier, Gunnlaugsson proposed to dissolve the parliament and called for a new election but President Olafur Ragnar Grimsson declined the request.