Fission has appeared between Sofia city mayor Stefan Sofianski and the majority of political formations represented in the municipal council on the issue what stake of Municipal Bank should be privatised. Sofianski's opponents in the municipal council are pursuing the privatisation of the municipality's entire stake in the bank, which adds up to 80.5% while the mayor is insisting that city should retain some interest in the bank. The Sofia municipal council decided in mid-2004 that the municipal stake in the bank should be reduced below 50% to clear the legal hurdles for the access of the local government to adequate infrastructure funding. The capital city has an annual budget of some BGN 400 mln, which has always been managed by Municipal Bank. EBRD has deposited a letter of intent targeting the acquisition of no more than 20% of Municipal Bank while Dexia Kommunalkredit Bank is said to be interested in at least 51% participation. Also in the frame is Germany's Depfa Bank, which has said municipal ownership should not dip below 34%. Municipal Bank, currently rated BB- with a stable outlook by Standard&Poor's, was incorporated in 1996 with capital of BGN 25 mln. The bank's nation-wide network includes 16 branches and 26 offices. The assets of the bank stood at BGN 412.8 mln circa September 30, 2004, while the credit portfolio was worth BGN 154.9 mln. The net profit of the bank was BGN 2.39 mln at the end of the third quarter.