The Panama Papers made Iceland’s prime minister resign. Here’s why

April 6, 2016 5:09 PM

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The Panama Papers made Iceland’s prime minister resign. Here’s why

Iceland may be a small country, but it makes a lot of international headlines. In 2008 it became a poster child for the dangers of rapid financial growth when its hyper-leveraged banking system imploded. Over the next few years, the country became a darling for those looking for hope after the economic crisis, as its economy recovered remarkably quickly. Several Icelandic initiatives drew international attention, including a policy of letting banks fail, a new crowd-sourced constitution and efforts to prosecute financial actors that had contributed to financial calamity.

Now it’s in the newspapers for another reason. Its prime minister has seemingly been forced to resign after the leaked Panama Papers revealed that his family holds funds in offshore shell companies. The political furor shows that Iceland’s recovery is brittle and its underlying social consensus weak...

Also read: John Key resignation 'changes New Zealand political game'

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