Panama Papers: Iceland appoints new Prime Minister

Iceland's ruling coalition appointed Sigurdur Ingi Johannsson as the country's new prime minister and said early elections would be held in the autumn.

Agriculture and Fisheries Minister Johansson (pictured) replaces Sigmundur Gunnlaugsson, who resigned on Tuesday after being implicated in the Panama Papers documents leak.

Johannsson is deputy leader of the Gunnlaugsson's right-of-centre Progressive Party .

Gunnlaugsson resigned after his request for a dissolution of parliament was rejected by President President Olafur Ragnar Grimsson.

Leaked documents from Panama law firm Mossack Fonseca revealed he had owned an offshore firm which held bonds in the three Icelandic banks that collapsed in the financial crisis.

He sold the firm to his wife who was still the owner, according to the documents.