RPT-UPDATE 1-EU/IMF team revises down Irish 2012 deficit forecast

* Irish 2012 deficit expected to be lower than forecast

* Ireland may aim for even more ambitious deficit reduction

* Report calls for clarification of state asset sale plans

(Adds detail on state asset management)

BRUSSELS, Sept 9 (Reuters) - Ireland's budget deficit next year is likely to be smaller than previously expected, a team of international inspectors said in a report released on Friday.

The inspectors from the European Commission, the European Central Bank and the International Monetary Fund said in a quarterly review of Ireland's meeting the criteria of emergency loans that the 2012 deficit was likely to be 8.6 percent of GDP, rather than 8.8 percent as forecast previously.

"Moreover, the minister for finance has publicly stated that the government may aim for a larger consolidation effort in the 2012 budget, without however being able to commit to specifics in advance of the conclusion of the ongoing expenditure review, which is expected for September," said the inspectors, known as the "Troika".

They also noted, however, that the implementation of the reform of the Irish financial sector, the collapse of which forced Dublin to seek emergency lending from the EU and the IMF, would continue to be challenging in the near term.

"The deleveraging of non-core assets is expected to accelerate, helped by an apparently stronger than previously expected demand for assets held abroad by the Irish banks," the report said.

"The restructuring of the domestic banks, which is well under way, has to continue with the ultimate goal of restoring a viable banking sector capable of serving the Irish economy by providing a wide range of products at competitive conditions," it said.

The report also called for more clarity on Ireland's privatisation plans, after the IMF urged Dublin on Wednesday to increase state asset sales to 5 billion euros from the currently earmarked 2 billion euros.

"Another area where clarification of plans would be highly beneficial is the management of state assets, which could greatly contribute to the economy's overall competitiveness as well as to alleviating the state's financing needs, including after the programme," the report said.

Irish Prime Minister Enda Kenny also said on Friday that Ireland's so-called troika -- the combination of its EU, IMF and ECB lenders -- are together looking for Dublin to commit to substantially more state asset sales the 2 billion euro target.

Kenny added that the review is a mark of recognition that Ireland will be the first euro zone country to emerge from the region's debt crisis.

Ireland secured an 85 billion euro bailout from the European Union and the IMF in late 2010 after state support to the country's collapsing financial sector raised Ireland's borrowing costs to unsustainable levels.

(Reporting by Jan Strupczewski, editing by Rex Merrifield, Ron Askew) (Additional reporting by Padraic Halpin)