(Bloomberg) -- Iceland’s three-party coalition will continue to rule the north Atlantic nation, headed by new Prime Minister Bjarni Benediktsson, after his predecessor Katrin Jakobsdottir stepped down to run for president.

The reshuffle, unveiled at a news conference in Reykjavik on Tuesday, allows the cabinet to stay in power for the 17 months that remain of its second term. The coalition, which spans the political spectrum, had a first term characterized by a robust pandemic response and consensus, but tensions have mounted over the past few years including on energy production and whaling.

Currently the foreign minister, Benediktsson is also chairman of the right-wing Independence Party which has traditionally been Iceland’s largest political party. The 54-year-old held the premier’s portfolio for less than a year in 2017 when then coalition partner Bright Future broke up the government over a scandal involving Benediktsson’s father.

Benediktsson stepped down as finance minister last October over the sale of the state’s shares in Islandsbanki hf where his father was among buyers. He had held the post since 2013 counting out his brief premiership in 2017.

“It was important for us to make sure that Katrin’s leaving will not create a political uproar,” Benediktsson told reporters. “We believe we have a good foundation.”

Read More: Iceland’s Prime Minister Steps Down to Run for President

Finance Minister Thordis Kolbrun Reykfjord Gylfadottir will return to her previous post as foreign minister, handing over reins at the Finance Ministry to centrist Progressive Party’s chairman, Sigurdur Ingi Johannsson, who currently oversees infrastructure. 

Jakobsdottir’s Left Green will be left overseeing the infrastructure and food & fisheries portfolios.

(Updates with details, background on Benediktsson from third paragraph.)

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