While the M0 money stock has indeed increased, inflation is up slightly, and banks are flush with capital to be loaned, the M3 stock ofmoney is actually down (a much broader measure ofmoney), 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 flush with Russian money deposited there to take advantage of the country's weak anti-money laundering rules.