Iceland's PM resigns over Panama Papers scandal


Iceland's prime minister has resigned following massive protests in the wake of the Panama Papers investigation which revealed how the world's wealthy avoid tax.

Sigmundur Gunnlaugsson stepped down on Tuesday hours after thousands of protesters gathered outside parliament to demand his resignation.

Agriculture Minister Sigurdur Ingi Johannsson - who will replace the prime minister for an interim period - confirmed to Icelandic broadcaster RUV that Gunnlaugsson was stepping down as leader of the country's coalition government.

Gunnlaugsson is the first major scalp from a leak of more than 11 million documents from Mossack Fonseca, a Panamanian law firm, showing tax-avoidance arrangements of the rich and famous around the world.