Panama Papers - Iceland Prime Minister Sigmundur Gunnlaugsson resigns Tuesday April 05,2016

Iceland's Prime Minister Sigmundur David Gunnlaugsson stands at the lectern to give a statement at the Parliament regarding the Panama papers, in Reykjavik on Monday April 04,2016

Iceland’s President on Tuesday April 05,2016 refused a request from the Prime Minister Sigmunder David Gunlaugsson to dissolve parliament and call a new election amid a dispute over the premier’s offshore tax affairs

President Olafur Ragnar Grimsson, however, said he wants to consult with other party leaders first before agreeing to end the coalition government between Mr. Gunlaugsson’s centre-right Progressive Party and the Independence Party.

“I need to determine if there is support for dissolving (parliament) within the ruling coalition and others. The Prime Minister could not confirm this for me, and therefore I am not prepared at this time to dissolve parliament,” Mr. Grimsson said.

Iceland's prime minister Sigmundur Gunnlaugsson  has resigned - the first major casualty of the leaked Panama Papers that have shone a spotlight on offshore finance

The leaks, from Panama-based law firm Mossack Fonseca, showed Sigmundur Gunnlaugsson owned an offshore company with his wife but had not declared it when he entered parliament

Sigmundur Gunnlaugsson is accused of concealing millions of dollars' worth of family assets.

Sigmundur Gunnlaugsson says he sold his shares to his wife, and denies any wrongdoing.

Sigmundur Gunnlaugsson  is one of dozens of high-profile global figures mentioned in the 11.5 million leaked financial and legal records, which were first published on Sunday April 03,2016

Pressure on Sigmundur Gunnlaugsson to quit had been building since then, with thousands of people protesting outside the parliament building in the capital Reykjavik on Monday and opposition parties tabling a confidence motion.