Thank you for your standpoint Ariel. Some times it is really better to leave some parts unrestored - in a state, as it was found. I somehow still cannot decide (re the handle).
As far as the origin is concerned, the seller told me it was allegedly from Crete ... Autonomous Cretan state was founded in 1898, so it may be written in "osmanli" ?? I think, that, except of what you said, there could also be two signs, which could spek for Crete - the shape of handle (shape of the pommel + shape of the lead collar) and (I feel it so) the shape of the blade.
But you are right - the engraving is "yataganish" ......
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