Defaulter registration with the government details debt and gains relevance for public banks; see how to consult – 12/19/2023 – Market

The new Cadin, a registry of defaulters with the federal public sector, which has been accessible since the beginning of the month through the Gov.br platform, is one of the federal government’s efforts to boost debt collection with the Union.

In an interview with Sheetthe attorney general of the National Treasury, Anelize Lenzi Ruas de Almeida, states that the tool has fallen into disrepute over the last few years, due to technological problems and limited information available.

Now, citizens and companies will have access to detailed information about their outstanding debts and how to settle these debts.

“This is excellent as a strategy for collecting the Union’s active debt, as a strategy for collecting public credit as a whole”, says the attorney general.

Cadin (Informative Register of Unpaid Credits of the Federal Public Sector) currently has 44 million CPF and CNPJ records and is accessed by almost 500 federal public administration bodies. Among them, federal state banks, to evaluate restrictions on granting loans.

Created in the 1990s, it was operated by the Central Bank until 2021, when the Economic Freedom Law determined its transfer to the PGFN (Attorney General of the National Treasury), which carried out work with Serpro to facilitate access to the tool.

There is information about any type of pending issue with the government, for example, debts with the PGFN and charges from the Federal Revenue, the two bodies that supply the system most, and fines (traffic, environmental, etc.).

The attorney general states that there were decisions from the Federal Supreme Court determining that Cadin’s data be disregarded because they were not reliable. Sometimes, in actions in which defaulting states and municipalities sought loans guaranteed by the Union. The Federal Audit Court has also relativized the importance of registration.

Previously, it contained information about pending issues with a specific CPF or CNPJ, but without indicating the number of records and the body of origin, among other data that will become mandatory.

Public bodies also had difficulties sending information or did not do so frequently, leaving the database outdated.

For the attorney general, renewing the system could lead to a change in this jurisprudence. She also assesses that the registry has the potential to serve as a centralization of regularity certificates, for example, from the Public Ministry of Labor, FGTS, active debt and the Federal Revenue.

“The corner market may not be bothered by Cadin. But that company that is looking for credit from Banco do Brasil, or that is thinking about a green project and wants financing from BNDES, is bothered. These are instruments that you can use a lot before tax execution, cheap instruments that stimulate tax collection”, states the Attorney General of the Treasury.

A PGFN ordinance determines that, by June 30, 2025, all public administration bodies must adapt to Cadin’s new requirements for sending detailed information about restrictions. Each pending issue will need to have its own record. Some are already complying with this determination.

The prosecutor’s office has also encouraged bodies to inform how debts can be regularized.

Alessandra Soares Freixo, National Treasury attorney who led the team responsible for developing the new Cadin, states that many bodies that were not registered are now using the system and that there has already been an increase in the number of user institutions in relation to what was received from the Central bank.

According to her, many of the innovations made by Serpro were based on requests from public banks, which are among the largest users of this database.

“We had the perception that Cadin was underused. Our expectation is that now, with this more adapted system and this innovation, it will be more inviting for users of the federal public administration to include their records”, says Freixo.

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Cadin, register of unpaid credits in the federal public sector

Who uses

• Used by public and private banks for credit assessment
• Used by all federal agencies to evaluate suppliers in bidding processes

News

• New registration management system
• Completion of the migration of Central Bank data to the new system
• Integration with approximately 600 bodies and entities

Access

• Individuals and legal entities included in Cadin will have access to information relating to them through direct access to the system through the address gov.br/cadin.
• It is possible to view information about CNPJ linked to a CPF, as long as the person is a legal representative or member of the legal entity’s membership
• Agencies will detail the debts that are causing pending registration

How to settle a pending issue
The inclusion and download of records in Cadin is the responsibility of the creditor agency. PGFN only manages the registration. Registration must be removed within five working days after regularization

Source: PGFN

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