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Panama Papers: Iceland president rejects PM’s snap election request

Click to play video: '‘We’re a laughing stock’ says Iceland MP in wake of PM’s attempt to dissolve government' ‘We’re a laughing stock’ says Iceland MP in wake of PM’s attempt to dissolve government
WATCH ABOVE: 'We're a laughing stock' says Iceland MP in wake of Prime Minister's attempt to dissolve government – Apr 5, 2016

REYKJAVIK, Iceland – Iceland’s president on Tuesday refused a request from the prime minister to dissolve parliament and call a new election amid a dispute over the premier’s offshore tax affairs.

Embattled Prime Minister Sigmunder David Gunlaugsson is facing growing calls for him to step down because of reported offshore financial dealings by him and his wife that opposition lawmakers say show a massive conflict of interest with his job.

READ MORE: More protests ahead as Icelanders seek PM’s resignation

Thousands of Icelanders protested outside parliament on Monday, demanding that Gunlaugsson resign, and a similar protest is planned for Tuesday evening. The prime minister will meet with parliament in a session Wednesday that is sure to be dominated by the topic.

WATCH: Thousands rally in Iceland after release of Panama Papers ignites controversy for PM

Click to play video: 'Thousands rally in Iceland after release of Panama Papers ignites controversy for PM' Thousands rally in Iceland after release of Panama Papers ignites controversy for PM
Thousands rally in Iceland after release of Panama Papers ignites controversy for PM – Apr 4, 2016

President Olafur Ragnar Grimsson, however, said he wants to consult with other party leaders first before agreeing to end the coalition government between Gunlaugsson’s centre-right Progressive Party and the Independence Party.

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WATCH: Iceland PM walks out on interview after being questioned about Panama Papers allegations

Click to play video: 'Iceland PM walks out on interview after being questioned about Panama Papers allegations' Iceland PM walks out on interview after being questioned about Panama Papers allegations
Iceland PM walks out on interview after being questioned about Panama Papers allegations – Apr 4, 2016

“I need to determine if there is support for dissolving (parliament) within the ruling coalition and others. The prime minister could not confirm this for me, and therefore I am not prepared at this time to dissolve parliament,” Grimsson said.

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He said he plans to meet with the government’s coalition partner “in a few hours” to discuss the crisis.

READ MORE: Iceland’s PM won’t resign in Panama Papers scandal

Leaked financial documents allege that the prime minister and his wife set up a company in the British Virgin Islands with the help of a Panamanian law firm. Gunlaugsson is accused of a conflict of interest for failing to disclose his involvement in the company, which held interests in failed Icelandic banks that his government was responsible for overseeing.

He has denied any wrongdoing.

Data curated by FindTheData

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