I believe this engine is with interference, therefore valve damage is possible. To check if it is with interference, remove all of the spark plugs, carefully and gently, by hand, rotate over the crank, if it contacts a valve (do this carefully) well.... then you have your answer. I'd then replace the belt with proper timing and do a compression check. If a valve went bad, you know quickly.
I hope this may have helped and I we'll keep our fingers crossed for you,
Tom
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