The prime minister of Iceland has resigned - the first major casualty of the Panama Papers leaks which have shed an embarrassing spotlight on the world of offshore finance.

The leaks, from Panama law firm Mossack Fonseca, showed PM Sigmundur Gunnlaugsson owned an offshore company, Wintris, with his wife.

He was accused of concealing millions of dollars worth of family assets.

A big protest was held in front of parliament in Iceland on Monday.

Reports suggest the agriculture minister will be the new PM.

Dozens of high-profile global figures are named in the huge Mossack Fonseca leak.

Gunnlaugsson had earlier called on the President Olafur Ragnar Grimsson to dissolve parliament, but that was refused.

Grimsson said he wanted to speak to political parties first.

"I do not think it is normal that the prime minister alone... should be given the authority to dissolve the parliament without the majority of the parliament being satisfied with that decision," the president told reporters.

Some observers describe his rejection of the prime minister's request as highly unusual.

After refusing to resign on Monday, the prime minister appeared to come under increasing pressure from within his governing coalition too.

He took to Facebook on Tuesday to outline his position.

"I told the leader of the Independence Party that if the party's parliamentarians think they cannot support the government in completing joint tasks, I would dissolve parliament and call a general election," he wrote.

(BBC)