While the M0 money stock has indeed increased, inflation is up slightly, and banks are flushwith capital to be loaned, the M3 stock of money is actually down (a much broader measure of money), the velocity of M3 is down, and banks have not been loaning out much money.
That might be politically appealing given concerns that Cyprus's banks are flushwith Russian money deposited there to take advantage of the country's weak anti-money laundering rules.