If government takes over, it would only mean a transfer of risks, but not elimination. If the conversion would take place directly and en masse on the foreign exchange market, this would almost certainly imply large exchange rate depreciation and possibly other unintended consequences.
Moreover it is hard to imagine indebted households that are eager to realize their losses on their foreign exchange liabilities while switching to the more expensive domestic currency financing, which is also subject to interest rate risks. It seems that the only safe way forward is a slow process of private sector balance sheet adjustment.