The Prime Minister of Iceland,

The agriculture and fisheries minister, Sigurður Ingi Jóhannsson, announced the Prime Minister's resignation on Tuesday, April 5, 2016.

Following the massive leaked documents from a Panamanian law firm, Mossack Fonseca,which exposed the Prime Minister's links to an offshore company, there was mass protests in the country's capital on Monday, asking Gunnlaugsson to quit.

Report said before Gunnlaugsson's resignation, senior political figures in the Nordic nation had held emergency talks amid fallout from the "Panama Papers" leaks.

In light of the allegations around the company, which allegedly had holdings in Iceland's collapsed banks, critics said it has shattered public confidence in the PM's leadership and could affect the country's international reputation.

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Gunnlaugsson has been the Prime Minister of Iceland since 2013. He has also been chairman of the ruling Progressive Party since 2009.