Egypt expressed its regret on Wednesday over a United States decision to deny it $95.7 million in aid and to delay a further $195 million, adding that it may have a negative impact on common interests, its Foreign Ministry said.

Two US sources familiar with the matter told Reuters on Tuesday the decision came because of Egypt's failure to make progress on respecting human rights and democratic norms.

"Egypt sees this measure as reflecting poor judgement of the strategic relationship that ties the two countries over long decades and as adopting a view that lacks an accurate understanding of the importance of supporting Egypt's stability," the ministry said in a statement.

Egyptian authorities have been fighting an insurgency based in the north of the Sinai Peninsula, where an ISIS group affiliate has killed hundreds of soldiers and policemen.

The Pentagon is also concerned with preventing militants from crossing Libya’s porous border with Egypt.

source: Alarabiya