Really excellent and some the ways to force this straightforward methodology on "government" could include:

Fund managers refuse to make money available to SOEs. Think Furturegrowth
Banks refuse to make new loans to SOEs
Banks refuse to extend existing loans when they mature
Private individuals tell their bankers and fund managers NOT to lend to SOEs
Investors do not bid for Treasury Bonds
Investors do not buy government bonds
Retail investors stop buying RetailBonds

Money is a powerful tool and it is not being well used by the people who control it