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FILE PHOTO - An American flag is seen behind an Egyptian flag at a rally against Egypt's President Hosni Mubarak outside the Federal Building in Westwood, California, January 29, 2011. REUTERS/Eric Thayer

(reuters_tickers)

CAIRO (Reuters) - 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 U.S. 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.

(Reporting by Ahmed Aboulenein; Editing by Eric Knecht)

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Reuters