REYKJAVIK (Web Desk) – The Prime Minister of Iceland has stepped down after mass protests called on him to resign.

According to media reports, thousands of people surrounded the parliament to demand Prime Minister Sigmundur David Gunnlaugsson’s resignation on Monday.

Panama papers exposed that he had been using an offshore firm to allegedly hide reserves worth millions of pounds. The papers revealed that he and his wife owned a company, opposition parties had called for a no confidence vote against him. Even though there is no suggestion that he has acted illegally by his involvement in the scheme, 20,000 or so protesters gathered outside his house calling for him to step down from the office. That is 10% of Iceland’s total number of voters.

Ex-Prime Minister initially denied any wrong doing following the revelations but reportedly resigned amid rising pressure. Ex-Icelandic PM is one of dozens of leaders around the globe to be named in the documents.

The documents suggest that while Mr Gunnlaugsson was overseeing negotiations with the creditors of Icelandic banks, his company was owed substantial sums from their bankruptcies.

He has said he and his wife have paid all their taxes and done nothing illegal.

He also said his financial holdings didn’t affect his negotiations with Iceland’s creditors during the country’s acute financial crises.

The Panama Papers are a huge cache of leaked files which name individuals allegedly linked with a law firm which specialises in shell companies for the purposes of avoiding tax payments.