The Sephardic Community of Kastoria dated from about 1550. Before the war it had as many as 900 members, most of whom lived in the Çarsı neighbourhood. This was no accident, as it means marketplace and most of them were merchants or craftsmen. They usually had shops of fabrics, glassware and ready-made clothes.

The community had a Synagogue and the Hellenic-Israelite School. Most of the Jews of Kastoria died in the war, while the survivors emigrated to the larger cities. As a result, there is little left in the city to remind one of the flourishing and vibrant community that once lived there.

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