After nearly five centuries of Ottoman rule, the victorious Greek army enters Ioannina and liberates the city.

The Treaty of Lausanne in 1923 was followed by the population exchange and the distribution of the refugees' properties to the newcomers. The Treaty of Lausanne was signed by Great Britain, France, Italy, Japan, Greece, Romania, the Kingdom of Serbs, Croats and Slovenes, and Turkey.

The Convention Concerning the Exchange of Greek and Turkish Populations was among the numerous Conventions, Declarations and Protocols that were signed.

By decision of the Joint Exchange Committee (June 1924), the properties of the deported Muslims were made available to the then Greek Government. The management of the Exchangeable Property was entrusted a little later to the National Bank of Greece (NBG).

The Tribute of Lalpare Mehmet Aga, under the supervision of the Waqf of Ioannina, was legally liquidated following the Greek-Turkish Convention on the Exchange of Populations of January 30, 1923, and was assigned to the management of the NBG.

In 1924, the Lyceum of Greek Women of Ioannina (Lykeion Hellenidon Ioanninon) submitted a request to the General Administration of Epirus to lease the building of the Mehmet Agha Camii, which after the Liberation was used as storage space. The Lyceum of Greek Women of Ioannina is one of the three oldest branches, founded in 1921, together with the branches of Volos (1920) and Pyrgos (1922). Its priority was to cater to refugees and to establish the “Kyriakou School”, which in the beginning was attended by 70 destitute girls, and the School of Housekeeping, where they provided instruction in cutting and embroidery. The Lyceum’s President during this period was Mari Vergioti-Pyrsinella, wife of Mayor Vasileios Pyrsinellas (1921-1929). The Lyceum intended that space to be used to provide work and education for destitute refugees. From September 10, 1924, the Lyceum of Greek Women was established in the former Muslim Mosque of Mehmet Agha. On 19/12/1926, the Muslim Community of Ioannina handed over to the National Bank of Greece the land and building of the Mehmet Agha Mosque with a total area of 2,119.71 sq. m on the adjacent M. Botsari and Vasilissis Olga's streets. It was then rented out to the Lyceum of Greek Women by the Ioannina Registrar of Finance, on the explicit promise on part of the official authorities that the Lyceum could proceed to purchase the building after the completion of the legal procedures of property management. Based on this promise, the Lyceum of Greek Women carried forward with repairing the premises, specifically the roof, floor, door, and windows since the building was in a dilapidated state. The Lyceum of Greek Women used the building for its lectures, for the School of Painting, Music, and folk dances as well as for the Kyriakou School for the Poor, which was organized every winter.

In 1928, the Ioannina Branch of the National Bank of Greece (NBG) informed the Central Branch of Athens about the dilapidated and dangerous state the minaret of the Mehmet Agha Mosque was in and requested permission for its demolition. The NBG granted permission after it deemed the reasoning sound on 22 March 1928. On 29 March 1928, after an autopsy of the area of the Mosque and especially the minaret, the Ioannina Police Department gave consent for its demolition after it was declared dangerous. On 19 April 1928, the Ioannina Police Department sent an informative letter to the Ioannina Branch of the National Bank of Greece about the possibility of filing a lawsuit in case of further delay on their part. Thus, on May 6, 1928, the NBG announced a tender for the demolition of the minaret of Mehmet Agha Mosque—now occupied by the Lyceum of Greek Women—and within the next few days, a private agreement was signed between the Director of the Ioannina Branch and NBG representative, Mr. Livadios, and contractor Theodoros Manousaridou. This private agreement stipulated the amount of the fee in drachmas and the project’s completion within 8 days. The demolition of the minaret was to be carried out up to the part of the roof of the Mosque, so as not to create any problem or damage to the rest of the building.

On April 18, 1929, at the City Council meeting, a pre-existing document (1928) of the General Governor of Epirus was orally presented, titled “Order of the General Administration of Epirus on the establishment of a Library in the city of Ioannina and on the collection of books from the former Zosimades Libraries, the former Turkish Club, and other institutions”. Also read out was the petition of the Student Association ????, dated November 10, 1928, for the establishment of the Library. The presiding Vice President, G. Roibas, pointed out the urgent need for the establishment of a Library in order to familiarize the youth and the people with the “noble” pursuit of studying during the hours of operation of the School. Moreover, they proposed that the first appropriation of the current year be set aside for the purchase of books and the gathering of salvaged books from the former libraries of the city. The Council unanimously decided to establish the Municipal Library and appointed Vice President G. Roibas as its Superintendent, to see to the way the Library is developed and to accept the donation of books on behalf of the City. He also assumed the responsibility of setting up an Organization for the Library after its establishment.

On October 12, 1929, the Mayor of Ioannina, Mr. Dimitris Vlachlidis, sent a document to the NBG Ioannina Branch setting out the study for the establishment of two institutions—the People's Library and the Byzantine Museum—and two exchangeable properties suitable for this purpose: the former Mosque of Mehmet Agha, where the Lyceum of Greek Women was housed, and the former Mosque of Aslan Pasha. The Municipality requested from NBG to become licensed to purchase them either through an appraisal or, if permitted by law, through an invitation to a bidding process. On January 4, 1930, the Mayor informed the Ioannina Branch of the NGB in writing of the decision of the City Council to purchase the former Mosques of Mehmet Agha—now the offices of the Lyceum of Greek Women—and Aslan Pasha. On January 8, 1930, the NGB approved the direct sale to the Municipality and the price was set by the Bank's valuers. At the same time, on June 16, the Union of Municipalities of Greece, with the adoption of resolutions of the General Administration, allowed the Ioannina Municipality to purchase the Mehmet Agha Mosque and, on July 30, 1930, the Decree on Purchase and Mortgage of the property on M. Botsaris street was published in the Government Gazette (Issue A’, No. 238). On August 20, 1930, the Deed of Purchase of the Mosque’s building drafted by the Notary Public of Ioannina, D. Liaskos, was signed between the National Bank of Greece (NBG) and the Municipality of Ioannina.