AMSTERDAM, (Reuters) – A Dutch regional government  stepped down yesterday after it lost 78 million euros ($110  million) in savings at an Icelandic bank unit and a commission  found it did not follow proper procedures.

The government of North Holland, a province in the northwest  of the Netherlands where Amsterdam is located, said in a  statement it wanted to take responsibility for the losses.

Parties in the regional parliament were in negotiations to  form a new government.

The provincial authorities lost the funds they banked with  Icesave, the Dutch unit of Icelandic bank Landsbanki, which was  nationalised by Iceland.

Dutch savers and regional authorities had put around 1.8  billion euros in Icesave, and the Dutch government compensated  consumers up to 100,000 euros in savings. Cities and provinces  were excluded from this arrangement.

Iceland agreed on Saturday to repay money to Britain and the  Netherlands over the next 15 years. Britain has paid out 2.3  billion euros to UK Icesave clients, while the Netherlands has  lent Iceland about 1.3 billion euros to pay Dutch clients.

The province has said it was still trying to get back some  of the 78 million euros from Landsbanki.   ($1=.7087 Euro)