U.S. withholds part of annual aid to Egypt

The U.S. State Department said on Wednesday it was "recalibrating" part of its 1.5 billion U.S. dollars of annual aid to Egypt in response to the situation in the country, holding the delivery of certain large-scale military systems and some cash assistance to the government.

State Department spokesperson Jen Psaki said in a statement that the U.S. will continue to hold the delivery of certain large- scale military systems and cash assistance to the Egyptian government "pending credible progress toward an inclusive, democratically elected civilian government through free and fair elections."

The State Department has not yet disclosed the amount of the part of aid to be withheld.

Psaki said as a result of the review directed by U.S. President Barack Obama, the U.S. has decided to maintain its relationship with the Egyptian government while "recalibrating our assistance to Egypt to best advance our interests."

The Obama administration made the decision to suspend part of its aid to Egypt months after the country's first elected President Mohamed Morsi was deposed by the military in July.

Washington has opted not to label Morsi's ouster as a coup, so as to enable it to continue its annual aid to Egypt that totals some 1.5 billion dollars. Instead, it has halted the delivery of four F-16 fighters to Cairo in a show of its unhappiness with the military's handling of the situation.

Psaki said the U.S. will continue its support to Egypt in areas like health, education and private sector development, as well as its assistance to help secure Egypt's borders, counter terrorism and proliferation and ensure security in the Sinai. The U.S. will also continue to provide parts for U.S. origin military equipment and military training and education.

The United States each year provided some 1.5 billion dollars in aid to Egypt, a long-term ally in the Middle East region that has been in turbulence for years.