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Iceland appoints new PM after Panama Papers leak

Iceland's ruling party has appointed a new Prime Minister after the previous incumbent stepped aside amid the Panama Papers leak scandal.

Sigurdur Ingi Johannsson has been appointed as Iceland's new Prime Minister Credit: Reuters

The Progressive Party selected fisheries and agriculture minister Sigurdur Ingi Johannsson to lead until new elections are held in the autumn.

Opposition parties agreed with the ruling coalition that the elections should be brought forward following the resignation of previous Prime Minister Sigmundur David Gunnlaugsson.

Gunnlaugsson stepped down after the leak of documents from a company in Panama, dubbed the 'Panama Papers', showed his wife owned a firm with links to the island's collapsed banks, sparking protests across the country.

Recent polls show the opposition Pirate Party, led by Birgitta Jonsdottir, is in the lead.

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Panama vows to 'evaluate' financial practices

President Juan Carlos Varela said a panel of experts would examine his country's financial practices Credit: Reuters

Panama's president has said his government will establish an independent panel of experts to review the country's financial practices, in the wake of the Panama Paper leaks.

Juan Carlos Varela's comments come amid the fallout from the leaked emails of Panama-based law firm Mossack Fonseca that have exposed tax avoidance measures by wealthy individuals and embarrassed a number of world leaders.

The Panamanian government, via our foreign ministry, will create an independent commission of domestic and international experts ... to evaluate our current practices and propose the adoption of measures that we will share with other countries of the world to strengthen the transparency of the financial and legal systems.

– Juan Carlos Varela, president of Panama

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Panama Papers law firm 'was victim of external hack'

Mossack Fonseca has reportedly filed a complaint over the hack with Panama state prosecutors Credit: PA

The founding partner of Mossack Fonseca, the Panama-based law firm at the center of the Panama Papers data leak, has said his firm was a victim of a hack from outside the company.

Ramon Fonseca said his company had broken no laws and had filed a complaint over the hack with the Panama state prosecutor.

He said the company emails - extracts of which have been published media organisations around the world and have already prompted the resignation of Iceland's prime minister - were "taken out of context" and had been misinterpreted.

The more than 11.5 million documents leaked from the law firm have caused public outrage over how the world's rich and powerful are able to stash away their wealth and avoid taxes while many people suffer austerity and hardship.

Prime Minister in 'tricky' situation over Panama Papers

David Cameron faces a "tricky" situation after the Panama Papers leak raised questions about his late father's tax affairs, according to ITV News Political Editor Robert Peston.

He also told News at Ten that any move by governments to impose more fines on banks for their involvement in the scandal could mean "a lot of this business would disappear overnight".

PM father's offshore fund situation remains 'unclear'

Today saw the first casualty of the Panama Papers scandal, as Iceland's Prime Minister offered his resignation over claims he hid millions of pounds.

But what has happened to the investment company founded by David Cameron's late father, Ian, and mentioned in those papers, is "still unclear".

"All we know for sure tonight is that David Cameron and his immediate family are not beneficiaries", ITV Correspondent Libby Wiener reports.

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