Agriculture Minister Sigurdur Ingi Johannsson told Icelandic broadcaster RUV that Gunnlaugsson was stepping down as leader of the country’s coalition government.

Opposition lawmakers say Gunnlaugsson’s offshore holdings amounted to a major conflict of interest with his job.

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