Thousands of Icelanders demonstrated in Reykjavik yesterday demanding the resignation of Prime Minister Geir Haarde and Central Bank Governor David Oddsson for failing to stop a financial meltdown in the country.
It was the latest in a series of protests in the capital since the financial meltdown that crippled the island's economy.
A separate group of 200-300 people gathered in front of the city's main police station demanding the release of a young protester being held there, Icelandic media reported.
Police in riot gear used pepper spray to drive back an attempt to free the protester during which several windows at the police station were shattered.
The protester was later released after a fine he had been sentenced to pay was paid.
Iceland's three biggest banks - Kaupthing, Landsbanki and Glitnir - collapsed under the weight of billions of dollars of debts accumulated in an aggressive overseas expansion, shattering the currency and forcing Iceland to seek aid from the International Monetary Fund.
This week Iceland secured a package of more than $10 billion (€8bn) in loans from the IMF and several European countries to help it rebuild its shattered financial system.
Despite the loans, Iceland faces a sharp economic contraction and surging unemployment while many Icelanders also risk losing their homes and life savings.