Haarde calls for Iceland general election

REYKJAVIK, Iceland, Jan. 24 (UPI) -- Icelandic Prime Minister Geir Haarde says a general election should be held in his country this May to find his replacement.

Haarde revealed at a news conference Friday that he has been diagnosed with cancer and would not seek re-election to his post, the Daily Mail reported.

"I have decided not to seek re-election as leader of the Independence Party at its upcoming national congress," the prime minister said.

The next general election is to take place in 2011, but Haarde has been under increased pressure as a result of his country's ongoing economic crisis, the British newspaper said.

Iceland's economy is expected to decrease by 10 percent in 2009 following the collapse of the country's currency and financial system last October, the Mail said.

Financial Times reported Iceland has received a $6 billion bailout from neighboring countries and the International Monetary Fund.

IMF officials have demanded the country, which has a population of 320,000 people, implement punitive financial and structural reforms in response to the economic downturn.